Annual Report (10-k)

Date : 02/28/2019 @ 10:10PM
Source : Edgar (US Regulatory)
Stock : Viva Entertainment Group, Inc. (OTTV)
Quote : 0.0012  -0.0001 (-7.69%) @ 9:16PM

Annual Report (10-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-K

 

 

  Annual Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of 1934
   
For the fiscal year ended   October 31, 2018
   
Or

  

  Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of 1934
   
  For the transition period from _____to _____

 

COMMISSION FILE NUMBER:  333-163815

VIVA ENTERTAINMENT GROUP INC.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of organization)

 

143-41 84th Drive

Briarwood, New York 11435

(Address of principal executive offices)(Zip Code)

 

Registrant's telephone number, including area code:  347-681-1668

 

N/A

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

including area code, of agent for service)

 

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

Common Stock, par value $0.00001 per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

 

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 ☒ No ☐  

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of the chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

 

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

 

Large accelerated filer   Accelerated filer              

Non-accelerated filer   

(Do not check if a smaller reporting company)

  Smaller reporting company  
    Emerging growth company  

 

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 126-2 of the act):

Yes ☐ No ☒

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter, February 20, 2019 was $403,400.

 

As of February 22, 2019, 32,278,463 shares of common stock, $0.00001 par value per share, were outstanding.

 

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Table of Contents

 

    Page
PART I
     
Item 1. Business 4
Item 1A. Risk Factors 10
Item 1B. Unresolved Staff Comments 10
Item 2. Properties 10
Item 3. Legal Proceedings 10
Item 4. Mine Safety Disclosures 10
     
PART II
     
Item 5. Market for Registrant’s common Equity, Related Stockholders Matters, and Issuer Purchases of Equity Securities 11
Item 6. Selected Financial Data 12
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation 12
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 16
Item 8. Financial Statements and Supplementary Data 17
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 30
Item 9A. Controls and Procedures 30
Item 9B. Other Information 31
     
PART III
     
Item 10. Directors, Executive Officers and Corporate Governance 32
Item 11. Executive Compensation 34
Item 12. Security Ownership of Certain Beneficial Owners and Management 37
Item 13. Certain Relationships and Related Transactions, and Director Independence 38
Item 14. Principal Legal and Accounting Fees and Services 38
     
PART IV
     
Item 15. Exhibits, Financial Statement Schedules 39
     
  Signature Page 40

 

 

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Annual Report on Form 10-K (this “Report”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,” “believe,” “estimate,” “intend,” “could,” “should,” “would,” “may,” “seek,” “plan,” “might,” “will,” “expect,” “predict,” “project,” “forecast,” “potential,” “continue” negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements.

 

We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places throughout this Report and include information concerning possible or assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies; future cash flows; financing plans; plans and objectives of management; any other statements regarding future acquisitions, future cash needs, future operations, business plans and future financial results, and any other statements that are not historical facts.

 

These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. All subsequent written and oral forward-looking statements concerning other matters addressed in this Report and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Report.

 

Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.

 

CERTAIN TERMS USED IN THIS REPORT

 

When this report uses the words “we,” “us,” “our,” and the “Company,” they refer to  Viva Entertainment Group Inc.  f/k/a Black River Petroleum Corp. and its consolidated subsidiaries. “SEC” refers to the Securities and Exchange Commission.

 

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PART I

 

ITEM 1. BUSINESS.

 

Overview

 

The Company was incorporated on October 26, 2009 in the State of Nevada. The Company originally engaged in the development of a website and also the design and development of a catalogue to sell over the counter and prescription medications, and supplements. In 2012, the Company undertook a change in focus to the natural resources sector where it was engaged in the acquisition and exploration of base metals and mineral mining properties.

 

On April 5, 2016, the Company completed the purchase of Viva Entertainment Group, Inc. (“Viva Entertainment”), a Delaware corporation, from EMS Find, Inc. (“EMS”) pursuant to a stock purchase agreement. Viva Entertainment’s Chief Executive Officer, Johnny Falcones, was appointed as the Company’s sole director, President and Chief Executive Officer to manage the development and marketing of Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones.

 

Pursuant to the stock purchase agreement, the Company and EMS agreed to transfer control of Viva Entertainment to the Company through the purchase of all outstanding shares of stock of Viva Entertainment by the Company in exchange for the issuance to EMS of a 10% promissory note in the principal amount of $100,000, due six months from the Closing (the “EMS Note”), and the issuance of 22,000,000 shares of common stock to Johnny Falcones. For accounting purposes, the transaction was treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of Viva Entertainment Group, Inc. exclusive of Black River Petroleum since all predecessor operations were discontinued. As part of the transaction, stock payable and amounts due to former officers were forgiven, with the balances recorded as Contributed Capital. For equity purposes, additional paid-in capital and retained deficit shown are those of Viva, exclusive of Black River Petroleum. Viva had no operations prior to the quarter ended April 30, 2016.

 

In management’s opinion, all adjustments necessary for a fair statement of the results for the presented periods have been made.  All adjustments made were of a normal recurring nature.

 

Viva Entertainment Group Inc. (the “Company”) develops and markets Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones. The Company is based in Briarwood, New York.

 

Internet Protocol Television (IPTV/OTT) is a system through which television services are delivered using the Internet protocol suite over a network such as the Internet, instead of being delivered through traditional terrestrial, satellite signal, and cable television formats.

IPTV services may be classified into three main groups: 1) Live television, with or without interactivity related to the current TV show; 2) Time-shifted television: catch-up TV (replays a TV show that was broadcast hours or days ago), start over TV (replays the current TV show from its beginning); 3) Video On Demand (VOD): browse a catalog of videos, not related to TV programming.

A Content Delivery Network (CDN) is an interconnected system of computers on the Internet that provides Web content rapidly to numerous users by duplicating the content on multiple servers and directing the content to users based on proximity. CDNs are used by Internet Service Providers (ISPs) to deliver static or dynamic Web pages but the technology is especially well suited to streaming audio, video, and Internet Television ( IPTV ) programming Over-The-Top (OTT) content, describes broadband delivery of video and audio without a multiple system operator being involved in the control or distribution of the content itself. Consumers can access OTT content through internet-connected devices such as PCs, laptops, tablets, smart phones including iPhones and Droid phones, set-top boxes, Smart TVs and gaming consoles. 

 

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During the year ended October 31, 2018, the Company has completed the interface redesign as part of the revenue sharing and service agreement with FlixFling, LLC, allowing subscribers access to the FlixFling catalogue through the VIVA portal. The Company signed a five-year agreement with FlixFling which provides for a share of 20% of sales by the Company of FlixFling subscriptions and 30% from video-on-demand downloads sold through the Company. The agreement also provides for the Company and FlixFling to work together to promote and market the product and also develop an integrated user experience between the two services.

 

Johnny Falcones, Chief Executive Officer of the Company has spent six months since signing the revenue share agreement with FlixFling in December 2017, working together to develop a seamless and integrated platform so that the Company’s customers can access one of the best streaming services in the industry for the latest movies and music videos on demand.

 

From the beginning, the Company’s goal has been to create an affordable solution giving our customers access to the broadest possible range of meaningful content. FlixFling’s platform of movies-on-demand combined with music video channels makes the Company one of the best OTT providers on the market. The redesigned app will allow customers to easily access both Company and FlixFling content without having to switch between apps. It is just one more way in which the Company is setting itself apart from the rest of the OTT community.

 

Philadelphia-based FlixFling offers over 15,000 movies and television shows across all genres in an OTT format. Their unique service gives customers a choice between video-on-demand and monthly subscription services. They are currently the only streaming service to offer both movies and music to customers at one low price and the only service to offer streaming music video channels.

 

In addition, the Company announces that it has entered into a partnership with Comcast, Communications Management LLC d/b/a Comcast Technologies Solutions Inc. The partnership begins January 2019.

 

The Company and its Vivalivetv system will begin working on content, logistical and other technology services provided solely by Comcast Communications Management. This partnership will help enhance our subscriber base in order to create more revenue. A joint press release will be available by both parties in early 2019.

 

Platform:

 

The company’s subscription offering provides the components and systems to build up a CDN and along with Viva Middleware (the heart of the system), allows the provision of IPTV (Live and VOD) and other value added services, no matter the type of network (managed or unmanaged) or the number of subscribers.

 

Middleware:

 

Interactive TV Middleware is a multi service delivery platform (MSDP), providing converged and interactive IPTV services for the ISP, Telco, Cable and Campus/Hospitality market. The platform enables end users to enjoy rich multimedia services any time - any place. Services can be delivered over IP, DVB-C/T/S or 3G/4G access networks using several different devices in managed network or Over The Top, via open Internet. In addition, this innovative approach enables third parties to develop attractive first or second screen applications on different devices like PC, mobile phones, tablets, Smart TV sets or various STB devices.

 

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Competitive Edge:

The platform represents the heart of the IPTV ecosystem, enabling service providers to accomplish attractive visual and functional differentiation of their IPTV service. Agile development allows service providers quick response to competitive market conditions. The company's main competitive advantages are field proven application platform, platform openness and flexibility, unique bouquet of IPTV converged multimedia services and customizable, responsive and graphics-rich user interface. Pay as you grow approach enables service providers to start slowly and extend the system according to the actual growth of the subscriber base. The platform comes with comprehensive system management module, which enables total control over operational parameters and central customer, device and service provisioning. The company enables the service provider to manage its video, audio and information assets and to offer these assets within reliable and compelling platform. It offers a rich information support for Live TV service with customizable channel list and e-program guide in various shapes. TV channel recording functionality is available in various flavors to satisfy user's needs and lifestyle: program recording, Time-shifting, Pause Live TV and Instant TV recording. Middleware is offered as a standalone solution, as the most important building block for the complete end to end IPTV solution, whether in the multicast, DVB or Over the Top environment.

The company's IPTV solution is based on the best of breed components and solutions from the leading vendors in the IPTV world that have been proven in many wide and varied cases and environments in the past. End-2-End solutions designed by the company are based on the Open Standards Systems and Standards adopted in the DVB and IP world.

Distribution

Our company operates three main specific segments of business.  They are the following:  (1) Broadcast and Digital Content Syndication to media distribution affiliated companies; (2) Direct-To-Consumer content subscription and on demand content services; (3) Consumer Electronic Subscription Sales that are company branded and sold to engaged customers on our owned and/or affiliated media platforms to ensure an enhanced audience participation experience.  Each are dependent on some common variables including brand recognition and reinforcement, ability to adequately market our services, and the continued use of available technology tools to enable efficient growth and management of the business.  We operate and derive revenues for the aforementioned areas of businesses mentioned herein as follows:

 

(1) Broadcast and Digital Content Syndication:

a. This business relies on the continued increase of content offerings into the marketplace offered to media companies in both the broadcast and digital media space

b. There’s a heavy reliance factor on the levels of audience, customer engagements, and ratings that determine the levels of participation that our content has

c. The successful sale of advertising associated with our syndicated content depends to the aforementioned levels of active consumer engagements with our media affiliated partners

d. Part of the business model is to license the content to these media entities that become our content affiliates

e. The company will derive revenue from the sale of advertising offerings that are directly associated with the content subscription being syndicated to these media affiliated entities

 

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(2) Direct-To-Consumer Content Subscription and On Demand Content Services:

a. This business relies on the successful completion and launch of our company’s own content software application.  

b. The application branded as, “Oi2” is being engineered to be a full cross-platform accessible software application that will be made available on most mobile devices, media enabled set-top boxes and connected devices, as well as, other available distribution outlets in an effort to accommodate various consumer behaviors as it relates to content consumption

c. The company has secured affiliation agreements to provide a wide offering of content subscription available to consumers including but not limited to live and linear broadcast and cable television networks, on demand prime time television shows, pay-per-view and purchase options for an estimated 7,000+ Hollywood films/movies, and hundreds of audio channels in a wide variety of genres and formats.  

d. The content subscription offerings for this business derives revenues from active consumer subscriptions of content, as well as, per instance or pay-per-view and on demand offerings that require the consumer to pay using a bank credit or debit card per transaction

(3)  Consumer Electronic Subscription Sales:

a. This part of the business is based on a joint venture with third party partners under our JV with Oi2

b. The third party partner owns and controls a consumer electronics sourcing company that provides electronic consumer goods to certain retail store chains and e-commerce sales outlets

c. The joint venture agreement allows for the company to open e-commerce stores on its own consumer directed media software applications and/or third party affiliated distribution partner platforms

d. Once launched revenues will be derived from the sales of consumer electronics subscription for a revenue share of the sales (after manufacturing, sourcing, shipping, and other related expenses are accounted for).  

 

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Growth Strategy

 

The company has a multifaceted approach to marketing its services and offerings.   These are mainly based on the business unit:

 

(1) Broadcast and Digital Content Syndication:

a. The company engages in direct calls to prospective media affiliated partners using its in-house staff of affiliate sales and affiliate relations personnel

b. The company markets on a regular basis most of its content offerings via industry targeted bulk email offerings or participation in industry related trade shows and sponsored events

c. The company also brings market awareness of its content services and offerings using widely distributed press releases to known industry related trade publishers 

(2) Direct-To-Consumer Content Subscription and On Demand Content Services:

a. The company plans to utilize unsold media inventory from its broadcast and digital content syndication business to promote the Oi2 App brand awareness and content subscription offerings in an aim to drive audiences to download or seek the application in the device of their choosing

b. The company also plans to leverage its existing relationships with industry media affiliated partners that desire to bring awareness of their own content offerings in our  App thus driving their consumer base to actively be incentive to download or seek the application in the device of their choosing

c. The company is currently actively in deployment of a social media marketing initiative to bring awareness and drive incentives to consumers to actively download or seek the application in the device of their choosing

d. The company is currently working with a certain increasing number of “social media influencers” or well-known talents that have been incentivized by the company to provide them with their own space to feature their branded content on our App.  As such their main task is to drive their social media followers to actively pursue their respective featured content on our App thus aiding in the increase of consumer downloads of the app and active user engagements

(3) Consumer Electronic Subscription Sales:

a. The company plans to utilize unsold media inventory from its broadcast and digital content syndication business to promote our App Consumer Electronic Subscriptions brand awareness and content subscription offerings in an aim to drive audiences to download or seek the application in the device of their choosing

b. The company also plans to leverage its existing relationships with industry media affiliated partners that desire to bring awareness of their own content offerings in our App Consumer Electronic Subscription thus driving their consumer base to actively be incentive to download or seek the application in the device of their choosing 

c. The company is currently actively in deployment of a social media marketing initiative to bring awareness and drive incentives to consumers to actively download or seek the application in the device of their choosing

 

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Competition, competitive position in the industry, and methods of competition 

 

We believe that our key competitive advantages are:

 

(1) Our ability to produce high quality yet low cost content on a high volume basis

(2) Ongoing industry relations with key companies and their respective executives to facilitate increase of affiliate relations

(3) Tenure in the marketplace with key advertising clients

(4) Certification as a minority-majority owned media company through our Oi2 Venture

(5) Upgrading our technology at all times 

  

Patents and Intellectual Property/Trademarks/Licenses/Franchises  

 

We do not currently own any patents.  We will apply for certain patents in the near future in respects to a proprietary content delivery and monetization platform that we have been developing.  We currently own two major trademarks through our JV. One is the exclusive use of the “Oi2” name.  The second is our faith and family friendly content brand known as, “ALMA.”  We are not a party to any license, royalty or franchise agreements at this time.

 

Government Regulations

 

The sale of software products is taxed at the federal, state and local levels, as well as at the international levels.  Our operations may be subject to more restrictive regulations and increased taxation by international, federal, state and local governmental agencies than are those of hardware and software related businesses. In such event, we have to raise prices on our products in order to maintain profit margins. The effect of such an increase could negatively impact our sales or profitability. 

Research and Development   

 

Since our inception, we have been actively investing in software and technology solutions that will enable better content deployment efficiencies, best practices for the sale of advertising, and increase of our integrity and accountability to our advertising clients.  

 

Employees and Employee Agreements

 

The officers and directors of the company come with a long encompassing history and resume of management in media related ventures.

 

The Company employs a total of eight individuals, of which two are executives, the remaining are involved in sales and operations.  

 

 

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ITEM 1A. RISK FACTORS.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item. 

 

ITEM 1B. UNRESOLVED STAFF COMMENTS.

 

None.

 

ITEM 2. PROPERTIES.

 

Headquarters and Administration Offices

 

The Company’s operations are currently being conducted out of the Company’s offices located at 2525 Ponce de Leon Blvd, Suite 300, Coral Gables, Florida 33134. The Company’s office space is being rented for a price of $4,000 per month   .  The Company considers the current principal office space to be adequate and will reassess its needs based upon the future growth of the Company.  

ITEM 3. LEGAL PROCEEDINGS.  

The Company has been involved in a protracted dispute with one of its creditors regarding the conversion of notes payable, applicable penalties and interest. As a result, the Company is the subject of a lawsuit filed in December 2017 in New York. Management believes that all obligations to the creditor have been met and that additional claims are usurious and unjustified. The Company has recorded a liability of $55,175 in Convertible Notes Payable for the value of the notes the creditor considers outstanding and has recorded an additional $200,000 in accrued expenses to account for the potential exposure in the event either a settlement is reached or the Company loses in litigation.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

Mine Safety and Health Administration Regulations  

 

This section no longer applies since we now operate in the development and marketing of Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones.

 

 

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PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDERS MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES.

 

Market Information.

 

Public Market for Common Stock  

 

Our common stock, par value $.00001 per share (the “Common Stock”), is currently quoted on the OTCQB under the symbol “OTTV”. The OTCBB is a quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter, or the OTC, equity securities. An OTCBB equity security generally is any equity that is not listed or traded on a national securities exchange. The following table shows, for the periods indicated, the high and low bid prices per share of our common stock as reported by the OTCBB quotation service. These bid prices represent prices quoted by broker-dealers on the OTCBB quotation service. The quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not represent actual transactions.

 

Price range of common stock

 

    High Close   Low Close
         
  Fiscal Year Ended October 31, 2018                  
  1st Quarter     $ 0.60     $ 0.45  
  2nd Quarter     $ 0.35     $ 0.25  
  3rd Quarter     $ 0.25     $ 0.15  
  4th Quarter     $ 0.08     $ 0.05  
                     
  Fiscal Year Ended October 31, 2017                  
  1st Quarter     $ 0.90     $ 0.80  
  2nd Quarter     $ 2.25     $ 1.90  
  3rd Quarter     $ 0.35     $ 0.25  
  4th Quarter     $ 2.20     $ 1.45  

 

The market price of our common stock will be subject to significant fluctuations in response to variations in our quarterly operating results, general trends in the market, and other factors, over many of which we have little or no control. In addition, broad market fluctuations, as well as general economic, business and political conditions, may adversely affect the market for our common stock, regardless of our actual or projected performance. 

 

Holders of Common Stock

 

We have 60 record holders   of our common stock as of February 22, 2019.

 

Dividends

 

We have never paid any cash dividends on our common shares, and we do not anticipate that we will pay any dividends with respect to those securities in the foreseeable future. Our current business plan is to retain any future earnings to finance the expansion and development of our business.

 

Securities Authorized for Issuance under Equity Compensation Plans.

 

On December 11, 2017, the Company filed an S-8 registration for an employee stock option plan. At present, the registration is active once filed and is currently in use by the Company as an incentive to issue common stock upon exercise of options to employees, directors, officers, consultants, advisors and other persons associated with the Company pursuant to the Stock Plan. Moreover, according to the Stock Plan, common stock may be issued and the beneficiary will have the ability to use his or her shares immediately, without the usual 6-month restriction. The plan was approved by the Board of Directors of the Company and is intended to provide a method whereby the Company may be stimulated by the personal involvement of its employees, directors, officers, consultants, advisors and other persons in the Company’s business and future prosperity, thereby advancing the Company’s interests and all of its shareholders. A copy of the Stock Plan has been filed with the SEC.

 

Registration Rights

 

We have not granted registration rights to any shareholders or to any other persons.

 

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ITEM 6. SELECTED FINANCIAL DATA.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.  

 

You should read the following discussion and analysis of our financial condition and results of operations together with the section entitled “Selected Financial Data” and our financial statements and related notes included elsewhere in this Information Statement. Some of the information contained in this discussion and analysis or set forth elsewhere in this Information Statement, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results may differ materially from those described below. You should read the “Risk Factors” section of this Information Statement for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

 

Overview

 

Viva Entertainment Group Inc. (the “Company”) is a business that develops and markets Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones. The Company is based in Briarwood, New York.

 

We were incorporated in the State of Nevada on October 26, 2009. From inception, we were originally engaged in the development of a website and also the design and development of a catalogue to sell over the counter and prescription medications, and supplements. In 2012, we undertook a change in our focus to the natural resources sector where it was engaged in the acquisition and exploration of base metals and mineral mining properties. After an unsuccessful exploration program on our mineral properties we decided to enter the market for over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones.

    

On April 5, 2016, the Company completed the purchase of Viva Entertainment Group, Inc. (“Viva Entertainment”), a Delaware corporation, from EMS Find, Inc. (“EMS”) pursuant to a stock purchase agreement. Viva Entertainment’s Chief Executive Officer, Johnny Falcones, was appointed as the Company’s sole director, President and Chief Executive Officer to manage the development and marketing of Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones.

 

Pursuant to the stock purchase agreement, the Company and EMS agreed to transfer control of Viva Entertainment to the Company through the purchase of all outstanding shares of stock of Viva Entertainment by the Company in exchange for the issuance to EMS of a 10% promissory note in the principal amount of $100,000, due six months from the Closing (the “EMS Note”), and the issuance of 22,000,000 shares of common stock to Johnny Falcones. For accounting purposes, the transaction was treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of Viva Entertainment Group, Inc. exclusive of Black River Petroleum since all predecessor operations were discontinued. As part of the transaction, stock payable and amounts due to former officers were forgiven, with the balances recorded as Contributed Capital. For equity purposes, additional paid-in capital and retained deficit shown are those of Viva, exclusive of Black River Petroleum. Viva had no operations prior to the quarter ended April 30, 2016.

 

On April 8, 2016, in connection with the purchase of Viva Entertainment Group, Inc., our Board of Directors authorized the issuance of an aggregate of 37,170,629 shares of common stock, comprised of 22,000,000 issued to our Founder and Chief Executive Officer (5,000,000 of which are registered in name of the wife of the CEO), 13,170,629 as common shares for consulting services to various consultants and 2,000,000 common shares as consideration for an investor entering into a share purchase agreement. An additional 500,000 common shares was issued for general corporate purposes.

 

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During the year ended October 31, 2018, the Company has completed the interface redesign as part of the revenue sharing and service agreement with FlixFling, LLC, allowing subscribers access to the FlixFling catalogue through the VIVA portal starting at 11am today. The Company signed a five-year agreement with FlixFling which provides for a share of 20% of sales by the Company of FlixFling subscriptions and 30% from video-on-demand downloads sold through the Company. The agreement also provides for the Company and FlixFling to work together to promote and market the product and also develop an integrated user experience between the two services.

 

Johnny Falcones, Chief Executive Officer of the Company has spent six months since signing the revenue share agreement with FlixFling in December 2017, working together to develop a seamless and integrated platform so that the Company’s customers can access one of the best streaming services in the industry for the latest movies and music videos on demand.

 

From the beginning, the Company’s goal has been to create an affordable solution giving our customers access to the broadest possible range of meaningful content. FlixFling’s platform of movies-on-demand combined with music video channels makes the Company one of the best OTT providers on the market. The redesigned app will allow customers to easily access both Company and FlixFling content without having to switch between apps. It is just one more way in which the Company is setting itself apart from the rest of the OTT community.

 

Philadelphia-based FlixFling offers over 15,000 movies and television shows across all genres in an OTT format. Their unique service gives customers a choice between video-on-demand and monthly subscription services. They are currently the only streaming service to offer both movies and music to customers at one low price and the only service to offer streaming music video channels.

 

In addition, the Company announces that it has entered into a partnership with Comcast, Communications Management LLC d/b/a Comcast Technologies Solutions Inc. The partnership begins January 2019.

 

The Company and its Vivalivetv system will begin working on content, logistical and other technology services provided solely by Comcast Communications Management. This partnership will help enhance our subscriber base in order to create more revenue. A joint press release will be available by both parties in early 2019.

 

Plan of Operation

 

As of October 31, 2018 we had a working capital deficiency of $5,159,012, had small revenues from content subscriptions in amount of $44,001, and have an accumulated deficit of $27,966,725.

 

Our auditors have issued a going concern opinion. This means that our auditors believe there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any material revenues or profits.

 

We have only four officers and directors. They are responsible for our managerial and organizational structure which will include preparation of disclosure and accounting controls under the Sarbanes Oxley Act of 2002. When these controls are implemented, they will be responsible for the administration of the controls. Should they not have sufficient experience, they may be incapable of creating and implementing the controls which may cause us to be subject to sanctions and fines by the SEC which ultimately could cause you to lose your investment. 

 

Limited Operating History

 

There is no historical financial information about us upon which to base an evaluation of our performance. We have not generated any revenues to date. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources.

 

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Results of Operations

 

Comparison of the years ended October 31, 2018 and 2017

 

The following table presents the statement of operations for the year ended October 31, 2018 as compared to the year ended October 31, 2017. The discussion following the table is based on these results. 

 

    Fiscal Year Ended October 31, 2018   Fiscal Year Ended October 31, 2017
         
Revenues   $ 44,001     $ 27,125  
                 
Operating Expenses                
                 
Consulting services   $ 473,700     $ 2,749,414  
Content     167,098       356,287  
Professional Fees     749,795       53,563  
General and administrative     532,992       1,015,518  
Wages     2,033,582       9,411,831  
Loss from Operations     (3,913,166 )     (13,559,488 )
                 
Total Other Expense     (3,019,310 )     (2,721,282 )
Net Loss   $ (6,932,476 )   $ (16,280,770 )

 

Revenues

 

We had revenues from content subscriptions in amount of $44,001 and $27,125 for the years ended October 31, 2018 and 2017, respectively.   

 

Operating Expenses  

 

For the year ended October 31, 2018, we incurred operating expenses in the amount of $3,957,167, compared to the operating expenses in the amounts of $13,586,613 in 2017. Our operating expenses were comprised of: (i) consulting services expenses of $473,700 and $2,749,414 for the years ended October 31, 2018 and 2017, respectively (ii) content expenses of $167,098 and $356,287 for the years ended October 31, 2018 and 2017, respectively (iii) professional fees of $749,795 and $53,563 for the years ended October 31, 2018 and 2017, respectively (iv) general and administrative expenses of $532,992 and $1,015,518 for the years ended October 31, 2018 and 2017, respectively, and (v) wage expenses of $2,033,582 and $9,411,831 for the years ended October 31, 2018 and 2017, respectively.   

 

Net Loss

 

Our net loss for the years ended October 31, 2018 and 2017 was $6,932,476 and $16,280,770, respectively. The decrease in net loss was the result of the decrease in consulting expenses, compensation and above mentioned costs. During the year ended October 31, 2018, we also incurred losses of $795,880 on changes of the derivative liability, compared to loss of $403,864 on changes of the derivative liability during the year ended October 31, 2017. In addition, we had interest and derivative expenses of $2,080,233 and loss on settlement of debt in amount of $143,197 during the year ended October 31, 2018, compared to interest and derivative expenses of $1,988,515 and loss on settlement of debt in amount of $328,903 during the year of 2017.

 

Inflation

 

We do not believe that inflation has had a material effect on our results of operations.

 

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Liquidity and Capital Resources   

 

As of October 31, 2018 and 2017, we had cash of $322 and $2,682, respectively. Current liabilities exceeded current assets by $5,159,012 at October 31, 2018, which included derivative liabilities of $2,878,931, accrued salaries due to officers of $535,338, net convertible debt of $931,056, related party payable of $64,270, and accounts payable and accrued expenses of $589,347. Other long term assets consisted of capitalized software development costs of $47,590, net of accumulated amortization.

 

Net cash used in operating activities was $821,954 and $1,076,925 for the years ended October 31, 2018 and 2017, respectively. The net cash used in operations was principally attributable to net losses of $6,932,476 and $16,280,770 during the years ended October 31, 2018 and 2017, respectively, offset principally by amortization of debt discount of $963,740 and $1,335,747, amortization expense of $6,928 and $6,904, common shares issued for services of $2,975,593 and $12,279,795, derivative expenses of $780,894 and $562,304, and increase in accounts payable by $184,932 and $407,180, loss of settlement of debt of $143,197 and $328,903, in such same periods, respectively.

 

We did not have cash flows from investing activities during the years ended October 31, 2018 and 2017, respectively.

 

Cash flows provided by financing activities were $819,594 and $1,079,222 for the years ended October 31, 2018 and 2017, respectively. Positive cash flows from financing activities during the year ended October 31, 2018 were due primarily to proceeds from convertible notes in amount of $851,394. Positive cash flows from financing activities during the year ended October 31, 2017 were due primarily to proceeds from related party payable of $89,100, proceeds from sales of common stock and convertible notes in amount of $12,000 and $1,026,202, respectively. 

 

We have small revenues from subscription in amount of $44,001 for the year ended October 31, 2018, and have four salaried employees   including Johnny Falcones, our officer and director. We currently require very limited resources but intend to hire employees and consultants in the latter part of 2019 for the Viva Entertainment operations. In due course, should we require capital for these operations, we will need to raise additional capital. There is no guarantee that we will be able to raise further capital. At present, we have not made any arrangements to raise additional capital but are diligently working on this.

 

If we need additional capital and cannot raise it we will either have to suspend operations until we do raise the capital or cease operations entirely. Other than as described in this paragraph, we have no other financing plans.

 

Future Contractual Obligations and Commitment

 

We incur contractual obligations and financial commitments in the normal course of our operations and financing activities. Contractual obligations include future cash payments required under existing contracts, such as debt and lease agreements. These obligations may result from both general financing activities and from commercial arrangements that are directly supported by related operating activities.

 

As of the date of this prospectus, we have no future contractual obligations or commitments.  

 

Off-Balance Sheet Arrangements

 

As of the date of this prospectus, we have not entered into any transaction, agreement or other contractual arrangement with an entity unconsolidated under which it has:

 

  a retained or contingent interest in assets transferred to the unconsolidated entity or similar arrangement that serves as credit;

 

  liquidity or market risk support to such entity for such assets;

 

  an obligation, including a contingent obligation, under a contract that would be accounted for as a derivative instrument; or

 

  an obligation, including a contingent obligation, arising out of a variable interest in an unconsolidated entity that is held by, and material to us, where such entity provides financing, liquidity, market risk or credit risk support to or engages in leasing, hedging, or research and development services with us.

   

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Recent Accounting Pronouncements

 

In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The Company elected to early adopt the new guidance in the second quarter of fiscal year 2016 which requires us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of additional stock compensation expense and paid-in capital for all periods in fiscal year 2016. Additional amendments to the recognition of excess tax benefits, accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes is required to be recorded. We have elected to account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period.

 

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230).” ASU No. 2016-18 requires that restricted cash be included with cash and cash equivalents when reconciling the change in cash flow. This guidance is reflected in these financial statements.

 

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the two-step goodwill impairment test. Under ASU 2017-04, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019; early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not elected early adoption of this standard and is currently in the process of evaluating the impact of adopting ASU 2017-04 and cannot currently estimate the financial statement impact of adoption.

 

In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements.

 

Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

 

Subsequent Events

 

Subsequent to October 31, 2018, the Company noted the following material events:

 

· 16,198,613 shares of common stock were issued on the conversion of notes payable.

 

· 800,000 shares of common stock were issued for services previously rendered by consultants.

 

· A total of five (5) convertible notes payable were issued totaling $161,800. Three of these notes totaling $100,000 bear interest at 12%, are due nine months from date of issuance, and convert at a discount of 40% off the average three lowest trading prices over the preceding ten days prior to conversion. The remaining two notes totaling $61,800 bear interest at 8%, are due twelve months from date of issuance, and convert at a discount of 50% off the average three lowest trading prices over the preceding ten days prior to conversion.

 

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.  

 

 

 

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Viva Entertainment Group, Inc. 

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Viva Entertainment Group, Inc. (the Company) as of October 31, 2018 and 2017, and the related statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended October 31, 2018, and the related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended October 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 7 to the financial statements, the Company suffered a net loss from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Managements plans regarding those matters are also discussed in Note 7. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ M&K CPAS, PLLC

 

We have served as the Company’s auditor since 2013.

Houston, TX

February 28, 2019

 

 

 

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VIVA ENTERTAINMENT GROUP INC.
Balance Sheets
 
 
    October 31,
2018
  October 31, 2017
ASSETS                
                 
Current Assets                
Cash   $ 322     $ 2,682  
Total Current Assets     322       2,682  
                 
Other Assets                
   Software, net of amortization of $20,963 and $14,035     47,590       54,518  
Total Other Assets     47,590       54,518  
Total Assets   $ 47,912     $ 57,200  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                
                 
Current Liabilities                
Accounts Payable and Accrued Liabilities   $ 589,347     $ 413,549  
Accrued Interest     160,392       61,520  
Accrued Salary and Wages     535,338       439,343  
Related Party Payable     64,270       66,070  
Convertible Notes Payable, net of discount     931,056       514,402  
Derivative Liability     2,878,931       1,463,047  
Total Current Liabilities     5,159,334       2,957,931  
                 
Stockholders’ Deficit                
                 
Common Stock, 41,000,000 shares authorized, par value 0.00001, 15,279,850 and 8,269,580 shares issued and outstanding at October 31, 2018 and October 31, 2017     153       83  
Stock Payable     1,808,250       3,079,200  
Additional paid-in capital     21,046,900       15,054,235  
Accumulated deficit     (27,966,725 )     (21,034,249 )
Total Stockholders’ Deficit     (5,111,422 )     (2,900,731 )
Total Liabilities and Stockholders’ Deficit   $ 47,912     $ 57,200  
                 
The Accompanying Notes are an Integral Part of These Financial Statements

 

 

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VIVA ENTERTAINMENT GROUP, INC.

Statements of Operations 

         
    For the Year Ended
    October 31, 2018   October 31, 2017
         
Revenues                
Subscriptions   $ 44,001     $ 27,125  
                 
Operating Expenses                
Consulting Services     473,700       2,749,414  
Content     167,098       356,287  
Professional Fees     749,795       53,563  
General and administrative     532,992       1,015,518  
Wages     2,033,582       9,411,831  
 Total Expenses     3,957,167       13,586,613
                 
Loss from operations     (3,913,166 )     (13,559,488 )
                 
Other expense                
Gain/(Loss) on change in derivative liability     (795,880 )     (403,864 )
Loss on settlement of debt     (143,197 )     (328,903 )
Interest and derivative expense     (2,080,233 )     (1,988,515 )
Total other expense     (3,019,310 )     (2,721,282 )
                 
Net Loss     (6,932,476 )     (16,280,770 )
                 
Net Loss Per Common Share – Basic and Diluted     (0.53 )     (4.17 )
                 
Weighted Average Number of Common Shares Outstanding     13,129,513       3,907,094  
                 
The Accompanying Notes are an Integral Part of These Financial Statements

 

 

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VIVA ENTERTAINMENT, INC.
Statements of Stockholder's Equity (Deficit)
                         
        Additional      
    Shares   Common   Paid-in   Stock   Retained   Total
    Outstanding   Stock   Capital   Payable   Deficit   Equity
Balance as of October 31, 2016     260,333     $ 3     $ 2,206,031     $ 512,400     $ (4,753,479 )   $ (2,035,045 )
                                                 
Shares issued on conversion of debt     7,784,147       78       1,285,608                       1,285,686  
Shares issued for cash     29,000       —         12,145                       12,145  
Shares cancelled                     (444 )                     (444 )
Settlement of derivative                     1,837,899                       1,837,899  
Shares issued for services     196,100       2       9,712,996       2,566,800               12,279,798  
Net loss for year ended October 31, 2017                                     (16,280,770 )     (16,280,770 )
Balance as of October 31, 2017     8,269,580     $ 83     $ 15,054,235     $ 3,079,200     $ (21,034,249 )   $ (2,900,731 )
                                                 
Shares issued on conversion of debt     3,698,939       37       654,036                       654,073  
Loss on debt conversion                     143,197                       143,197  
Settlement of derivative                     948,922                       948,922  
Shares issued for services     3,310,667       33       4,246,510       (1,270,950 )             2,975,593  
Shares issued due to reverse split     664       —                                   —    
Net loss for year ended October 31, 2018                                     (6,932,476 )     (6,932,476 )
Balance as of October 31, 2018     15,279,850     $ 153     $ 21,046,900     $ 1,808,250     $ (27,966,725 )   $ (5,111,422 )
                                                 
The Accompanying Notes are an Integral Part of These Financial Statements

 

 

 

 

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  VIVA ENTERTAINMENT GROUP INC.
Condensed Statements of Cash Flows
         
    For the Year Ended   For the Year Ended
    October 31, 2018   October 31, 2017
Operating Activities                
Net loss   $ (6,932,476 )   $ (16,280,770 )
Adjustments to reconcile net loss to cash used in operating activities:                
Amortization of other assets     6,928       6,904  
Amortization of debt discount     963,740       1,335,747  
Penalties incurred on debt     —         (120,408 )
Loss on Debt Conversion     143,197       328,903  
Derivative Expense     780,894       562,304  
Change in fair value of derivative liability     795,880       403,864  
Shares previously retired     —         (444 )
Common stock issued and payable for services     2,975,593       12,279,795  
Changes in operating assets and liabilities:                
   Accrued interest     163,363       —    
   Accrued payroll     95,995       —    
   Accounts payable and accrued liabilities     184,932       407,180  
Net Cash Used in Operating Activities     (821,954 )     (1,076,925 )
                 
Financing Activities                
   Net proceeds from borrowing from related parties     (1,800 )     89,100  
   Proceeds from sale of common stock     —         12,000  
   Payment on debt     (30,000 )     (48,170 )
   Proceeds from issuance of convertible notes     851,394       1,026,202  
Net Cash Used in Operating Activities     819,594       1,079,222  
                 
Increase (Decrease) in Cash     (2,360 )     2,297  
Cash - Beginning of Period     2,682       385  
Cash - End of Period   $ 322     $ 2,682  
                 
Supplemental Disclosure of Cash Flow Information                
Derivative issuances   $ 1,568,926     $ 1,086,089  
Derivative conversions   $ 948,922     $ 1,837,899  
Debt and interest converted into common stock   $ 654,073     $ 1,285,688  
Effect of reverse stock split   $ 41,265          
Cash paid for:                
 Interest   $ —       $ —    
 Income taxes   $ —       $ —    
                 
The Accompanying Notes are an Integral Part of These Financial Statements

 

  

 

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NOTE 1 – NATURE OF OPERATIONS  

 

Description of Business and History

 

The Company was incorporated on October 26, 2009 in the State of Nevada. The Company originally engaged in the development of a website and also the design and development of a catalogue to sell over the counter and prescription medications, and supplements. In 2012, the Company undertook a change in focus to the natural resources sector where it was engaged in the acquisition and exploration of base metals and mineral mining properties.

 

On April 5, 2016, the Company completed the purchase of Viva Entertainment Group, Inc. (“Viva Entertainment”), a Delaware corporation, from EMS Find, Inc. (“EMS”) pursuant to a stock purchase agreement. Viva Entertainment’s Chief Executive Officer, Johnny Falcones, was appointed as the Company’s sole director, President and Chief Executive Officer to manage the development and marketing of Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones.

 

Pursuant to the stock purchase agreement, the Company and EMS agreed to transfer control of Viva Entertainment to the Company through the purchase of all outstanding shares of stock of Viva Entertainment by the Company in exchange for the issuance to EMS of a 10% promissory note in the principal amount of $100,000, due six months from the Closing (the “EMS Note”), and the issuance of 22,000,000 shares of common stock to Johnny Falcones. For accounting purposes, the transaction was treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of Viva Entertainment Group, Inc. exclusive of Black River Petroleum since all predecessor operations were discontinued. As part of the transaction, stock payable and amounts due to former officers were forgiven, with the balances recorded as Contributed Capital. For equity purposes, additional paid-in capital and retained deficit shown are those of Viva, exclusive of Black River Petroleum. Viva had no operations prior to the quarter ended April 30, 2016.

 

In management’s opinion, all adjustments necessary for a fair statement of the results for the presented periods have been made.  All adjustments made were of a normal recurring nature.

 

Viva Entertainment Group Inc. (F/K/A Black River Petroleum Corp.) (the “Company”) develops and markets Viva Entertainment’s over the top (IPTV/OTT) application for connected TV’s, desktop computers, tablets, and smart phones. The Company is based in Briarwood, New York.

 

Going Concern

 

These financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year.  Realization value may be substantially different from carrying values as shown and these financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  As of October 31, 2018, the Company has a working capital deficiency of $5,159,012 and has an accumulated deficit of $27,966,725.  The continuation of Viva Entertainment Group as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations.  These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

 

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying audited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information Regulation S-K. Accordingly, they include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments consisting of a normal and recurring nature considered necessary for a fair presentation have been included. 

 

Use of Estimates

 

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses in the reporting period. We regularly evaluate our estimates and assumptions related to the useful life and recoverability of long-lived assets, stock-based compensation and deferred income tax asset valuation allowances. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe 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 us may differ materially and adversely from our estimates. To the extent there are material differences between our estimates and the actual results, our future results of operations will be affected.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid instruments with original maturities of three months or less when acquired, to be cash equivalents. There are no cash equivalents as of October 31, 2018 and 2017.  

 

Income Taxes

 

The Company accounts for income taxes under the provisions issued by the FASB which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company computes tax asset benefits for net operating losses carried forward. The potential benefit of net operating losses has not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

 

Loss Per Common Share

 

The Company reports net loss per share in accordance with provisions of the FASB.  The provisions require dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. As of October 31, 2018 and 2017, there were no dilutive common stock equivalents outstanding due to net loses causing their exclusion.

  

Fair Value of Financial Instruments

 

Pursuant to ASC No. 820, “Fair Value Measurements and Disclosures”, the Company is required to estimate the fair value of all financial instruments included on its balance sheet as of October 31, 2018 and 2017 . The Company’s financial instruments consist of cash and derivative liabilities.  The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to the short-term nature of these financial instruments.

 

The Company adopted ASC No. 820-10 (ASC 820-10), Fair Value Measurements.  ASC 820-10 relates to financial assets and financial liabilities. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (GAAP), and expands disclosures about fair value measurements. The provisions of this standard apply to other accounting pronouncements that require or permit fair value measurements and are to be applied prospectively with limited exceptions.

 

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ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This standard is now the single source in GAAP for the definition of fair value, except for the fair value of leased property as defined in SFAS 13. ASC 820-10 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions, about market participant assumptions, that are developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below:

 

  Level 1  Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

  Level 2  Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

  Level 3  Inputs that are both significant to the fair value measurement and unobservable. These inputs rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs are developed based on the best information available in the circumstances and July include the Company's own data.)

 

The following presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of October 31, 2018 and 2017: 

 

October 31, 2018:  

    Level 1   Level 2   Level 3   Total
Convertible Notes Payable, net of discount   $ 931,056     $ —       $ —       $ 931,056  
Derivative Liability     2,878,931                       2,878,931  
Total   $ 3,809,987     $ —       $ —       $ 3,809,987  

  

October 31, 2017: 

    Level 1   Level 2   Level 3   Total
Convertible Notes Payable, net of discount   $ 514,402     $ —       $ —       $ 514,402  
Derivative Liability     1,463,047                       1,463,047  
Total   $ 1,977,449     $ —       $ —       $ 1,977,449  

   

Derivative Financial Instruments

 

Fair value accounting requires bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments, and measurement of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option-pricing model. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt, the Company will continue its evaluation process of these instruments as derivative financial instruments.

 

Once determined, derivative liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives. In addition, the fair value of freestanding derivative instruments such as warrants, are also valued using the Black-Scholes option-pricing model.

 

Reverse Split

 

On October 12, 2018, the Company’s shareholders approved a reverse split of the issued and outstanding common stock on a 1:500 basis, which resulted in the cancellation of 7,255,764,887 shares of common stock. Immediately after effectuating the reverse split, there were 14,511,538 shares issued and outstanding. As a result of the reverse split, 644 shares of common stock were issued due to rounding. For comparative purposes, all share amounts reported in the accompanying financial statements have been shown retroactive of the reverse split for all periods presented.

 

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Recently Issued Accounting Standards

 

In July 2015, FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS).  The amendments in this ASU do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, this ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

 

In August 2015, FASB issued ASU No.2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” defers the effective date ASU No. 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU No. 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU No. 2014-09. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

 

All other newly issued accounting pronouncements but not yet effective have been deemed either immaterial or not applicable. 

 

  NOTE 3 – INCOME TAXES

 

Deferred income taxes arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The Company does not have any uncertain tax positions.

 

The Company as of October 31, 2018 has net operating loss carryforwards aggregating $5,855,969 (2017: $3,808,831), which expire through 2033. The deferred tax asset related to the carryforwards has been fully reserved. 

 

The Company has deferred income tax assets, which have been fully reserved, as follows as of October 31, 2018 and 2017:  

    2018   2017
Deferred tax assets   $ 2,049,589     $ 1,333,091  
Valuation allowance for deferred tax assets     (2049,589 )     (1,333,091 )
Net deferred tax assets   $ —       $ —    

 

 

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NOTE 4 – RELATED PARTY TRANSACTIONS 

 

In connection with the acquisition of Viva Entertainment and the resignation of our former officers and directors, the Company received forgiveness of stock payable of $3,390,000 and amounts due to directors of $132,854. These amounts were written off prior to closing and have therefore not been included in the Statement of Equity. 

 

The detail composition of the $535,338 in accrued wages with related parties as of October 31, 2018 includes the following due to officers and directors: Johnny Falcones $186,331 and John Sepulveda $165,226. In addition, $183,781 is owed to Alberto Gomes, a former director, for prior wages. This accrual covered services rendered by the employees for the period from April 2016 through October 31, 2018, less payments made to such employees during the period.

 

We issued to Edwin Batiz 2,500,000 restricted common shares, upon the execution of a services agreement, as fully paid and non-assessable shares restricted common stock for services rendered under this agreement.

Common Stock Payable includes $1,808,250 and $3,079,200 in stock payable with related parties as of October 31, 2018 and 2017, respectively. This stock payable is due to unissued shares earned on the employment agreements and for services performed during the years ended October 31, 2018, 2017 and 2016. 

John Sepulveda, a Company director, funded $10,000 to the Company for working capital during the year ended October 31, 2016. This amount was repaid during the 2017 fiscal year.

 

The Company periodically receives cash advances from officers and directors or their family members for routine working capital purposes. As of October 31, 2018 and 2017, a balance of $64,270 and $66,070 was owed to the spouse of the Company’s Chief Executive Officer. The advance is non-interest bearing and payable on demand.

 

NOTE 5 – CAPITALIZED SOFTWARE

 

Capitalized Software was comprised of the following amounts as of October 31, 2018 and 2017, respectively.

    October 31, 2018   October 31, 2017
Software costs   $ 68,553       68,553  
Accumulate amortization     (20,963 )     (14,035 )
Total software Costs, net accumulated amortization   $ 47,590     $ 54,518  

 

The above-mentioned software was purchased during the year ending October 31, 2016 by way of a series of payments made to a software developer called Axor. The beta stage software is for development of over the top technology, abbreviated as OTT in the industry, to air wireless live television, movies, on demand content and radio. The software application was launched prior to October 31, 2017 and began generating revenues.

 

The Company had an arrangement with Axor for $4,000 in monthly payments and, at October 31, 2018, $29,850 was due to Axor. No future monthly commitments exist under the month-to-month arrangement.

 

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NOTE 6 – CONVERTIBLE NOTES PAYABLE

 

During the fiscal years ended October 31, 2018 and 2017, the Company issued multiple convertible notes payable to several entities. The notes bear interest at rates between 8% and 15% and are convertible at rates between 40-60% of the lowest trading price of company’s common stock over a period ranging from 5-20 days prior to the date of conversion. All of the outstanding notes are either currently due or become due on or before October 30, 2019. The notes are summarized as follows:

 

Total convertible notes payable at October 31, 2018   $ 1,104,591  
Less: Current portion of notes payable     (1,104,591 )
Long term portion of notes payable     —    

 

The following table summarized the convertible note activity in the years ended October 31, 2018 and 2017:

 

    Principal Balance   Loan Discount   Accrued interest
October 31, 2016   $ 975,100     $ (607,777 )   $ 43,426  
Issued in the year     1,026,202       (1,111,092 )     —    
Converted into stock or repaid     (1,013,778 )     —         (28,765 )
Amortization of debt discount     —         1,335,747       —    
Interest accrued     —         —         46,589  
October 31, 2017   $ 897,524     $ (383,122 )   $ 61,520  
Issued in the year     787,515       (754,153 )      
Converted into stock or repaid     (580,448 )           (73,625 )
Amortization of debt discount           963,740        
Accrued interest                 172,497  
October 31, 2018   $ 1,104,591     $ (173,535 )   $ 160,392  

   

The Company evaluated the terms of the conversion features of its convertible debentures in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock and determined they are indexed to the Company's common stock and the conversion features meet the definition of a liability, and therefore bifurcated the conversion features and accounted for them as a separate derivative liability.

 

Changes in Derivative Liabilities were as follows: 

October 31, 2016   $ 1,248,689  
Issuance of derivative     1,086,089  
Conversion into stock or assignment     (1,827,309 )
Extinguishment of debt     (10,590 )
Change in fair value     966,168  
October 31, 2017     1,463,047  
Issuance of derivative     1,568,926  
Conversion into stock or assignment     (948,922 )
Change in fair value     795,880  
October 31, 2018   $ 2,878,931  

 

Interest expense for the years ended October 31, 2018 and 2017 was $184,170 and $46,589, respectively. Accrued interest payable on notes payable was $160,392 and $61,520 for the years ended October 31, 2018 and 2017, respectively.

 

The Company incurred a loss on the conversion of principal and interest during the years ended October 31, 2018 and 2017 of $143,197 and $328,903, respectively.

 

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NOTE 7 – GOING CONCERN

The losses, negative cash flows from operations, accumulated deficit and negative working capital deficiency sustained by the Company raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence. 

 

NOTE 8 - COMMON STOCK 

 

During the year ended October 31, 2017, the Company had the following common stock transactions:

  · A total of 7,784,147 shares (post split) were issued on the conversion of convertible debt and associated interest totaling $1,285,688.
     
  · 29,000 shares (post split) were issued for cash proceeds of $12,000.
     
  · 196,100 (post split) shares were issued for services rendered. Based on the stock price on the date of issuance, the Company recorded compensation an expense of $12,279,798 associated with the shares.
     

 Each of these issuances was made pursuant to an exemption from registration under Rule 144 of the Securities Act of 1933. 

During the years ended October 31, 2018, the Company had the following common stock transactions:

  · In October 2018, the Company effected a 1:500 reverse split of the common stock, which resulted in the cancellation of 7,255,764,887 shares of common stock and the issuance of 644 shares due to rounding differences.

 

  · The Company issued a total of 3,698,939 shares of common stock (post split) on the retirement of $654,073 of debt and associated interest.

 

  · The Company issued 3,310,667 shares of common stock (post split) having a value at issuance of $4,246,510 for services, which included $1,270,950 recorded as stock issuable in the prior year, resulting in a net expense of $2,975,593 for the year ended October 31, 2018.

Each of these issuances was made pursuant to an exemption from registration under Rule 144 of the Securities Act of 1933.

NOTE 9 – LITIGATION

 

The Company has been involved in a protracted dispute with one of its creditors regarding the conversion of notes payable, applicable penalties and interest. As a result, the Company is the subject of a lawsuit filed in December 2017 in New York. Management believes that all obligations to the creditor have been met and that additional claims are usurious and unjustified. The Company has recorded a liability of $55,175 in Convertible Notes Payable for the value of the notes the creditor considers outstanding and has recorded an additional $200,000 in accrued expenses to account for the potential exposure in the event either a settlement is reached or the Company loses in litigation.

 

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NOTE 10 – REVENUE RECOGNITION

 

The Company is a OTT service provider. It provides both pay-per-view and live streaming solutions for customers who subscribe to the services. The Company has engaged a third party, TIKI Live, to process the receipt of customer payments, which are then remitted to the Company in batches. Payments received from customers are deemed earned when received since the service (i.e., access to the OTT content) has been provided at the point of sale. Accordingly, the Company records revenues as proceeds are forwarded from TIKI Live. This same service provider also provides approximately 40% of the Company’s OTT content. During the years ended October 31, 2018 and 2017, 50% and 100% of the Company’s revenues were from TIKI Live; however, as the revenue base expands, this percentage should continue to decrease. The agreement with TIKI Live was executed in 2017 and expires in 2027.

 

NOTE 11 – SUBSEQUENT EVENTS   

 

Subsequent to October 31, 2018, the Company noted the following material events:

  · 16,198,613 shares of common stock were issued on the conversion of notes payable.

 

  · 800,000 shares of common stock were issued for services previously rendered by consultants.

 

  · A total of five (5) convertible notes payable were issued totaling $161,800. Three of these notes totaling $100,000 bear interest at 12%, are due nine months from date of issuance, and convert at a discount of 40% off the average three lowest trading prices over the preceding ten days prior to conversion. The remaining two notes totaling $61,800 bear interest at 8%, are due twelve months from date of issuance, and convert at a discount of 50% off the average three lowest trading prices over the preceding ten days prior to conversion.

 

 

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

 

There were no disagreements related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure during the two fiscal years and interim periods, including the interim periods up through the date the relationship ended.

 

ITEM 9A. CONTROLS AND PROCEDURES.

 

Disclosure Controls and Procedures

 

Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that are filed and submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that are filed under the Exchange Act is accumulated and communicated to management, including the principal executive officer, as appropriate to allow timely decisions regarding required disclosure. Under the supervision of and with the participation of its executive officer, the Company has evaluated the effectiveness of its disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this Annual Report. Based on that evaluation, the sole executive officer of the Company has concluded that, as of the end of the period covered in this Annual Report, these disclosure controls and procedures were ineffective.

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules forms, and that such information is accumulated and communicated to our management, including our principal executive officer (our president) and our principal accounting and financial officer (our chief financial officer and treasurer) to allow for timely decisions regarding required disclosure.  In designing and evaluating our disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management is required to apply its judgment in evaluation the cost-benefit relationship of possible controls and procedures.

 

Our management does not expect that our disclosure controls or our internal controls over financial reporting will prevent all error and fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, but no absolute, assurance that the objectives of a control system are met.  Further, any control system reflects limitations on resources and benefits of a control system must be considered relative to its costs.  These limitations also include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.  Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of a control.  A design of a control system is also based upon certain assumptions about potential future condition; over time controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.  Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

 

As of October 31, 2018, the year-end period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on the foregoing, our president and chief financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this annual report.

 

There have been no significant changes in our internal controls over financial reporting that occurred during the fiscal year ended October 31, 2018 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

 

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Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act, and assessed the effectiveness of our internal control over financial reporting as of October 31, 2017.  In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013 Framework).  A material weakness is a deficiency or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. We have identified the following material weaknesses:

 

  1. As of October 31, 2018, our controls over the control environment were not effective.  Specifically, we have not developed and effectively communicated to our employees our accounting policies and procedure.  This has resulted in inconsistent practices.  Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial experts as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.
     
  2. As of October 31, 2018, our controls over financial statement disclosure were not effective.  Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this deficiency constitutes a material weakness.
     
  3. The Company has no formal control processes related to the identification and approval of related party transactions. No formal policy for the approval, identification and authorization of related party transactions currently exists.

 

Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of October 31, 2018, based on the criteria established in “Internal Control-Integrated Framework” issued by COSO.

 

This annual report does not include an attestation report of the company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the company’s registered public accounting firm pursuant to temporary rules of the SEC that permit the company to provide only management’s report.

 

Changes in Internal Controls

 

There were no changes in our internal control over financial reporting during the fiscal year ended October 31, 2018 that have affected, or are reasonably likely to affect, our internal control over financial reporting.

 

ITEM 9B. OTHER INFORMATION.

 

None.

 

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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

 

Officers and Directors

 

Our directors will serve until successors are elected and qualified. Our four officers are elected by the Board of Directors to a term of one year and serve until a successor is duly elected and qualified, or until that person is removed from office. Our Board of Directors has no nominating, or compensation committees. Our Board of Directors have three members.

 

The name, address, age and position of our sole officer and director is set forth below:

 

Name and Address   Age   Positions
         
Johnny Falcones     48     President, Chief Executive Officer, and Director
Anthony Hernandez     48     Director
Michael Nagle     54     Director

 

The persons named above are expected to hold said offices/positions until the next annual meeting of our stockholders. The persons named above are the company’s only officers, directors, promoters and control persons.  Below is the business experience of each above listed individual during at least the last five years:

Background Information about Our Officers and Directors

Johnny Falcones , 48, President, Chief Executive Officer, and Director. Mr. Falcones has championed numerous challenges, while developing a business. One of them is the careers of Marc Anthony from its beginnings until 2001. Mr. Anthony was made to be a b r and of its own   . Right after Mr. Falcones developed a record label with Universal Music and Video Distribution and turned it in to a multi-million dollar label. It was five years ago when his business savvy became apparent when a friend, Mr. Alberto Gomez, and himself worked on a technology that promised to enhance the way people watch live television and entertain themselves in society today. Twenty-five years ago, Falcones was a kid from Brooklyn, who moon- lighted as a DJ while attending LaGuardia College in New York. Falcones quickly became the musical authority of NY's Latin House music scene of 90’s. It was one night at the Palladium nightclub, where he had a chance encounter with legendary music impresario Ralph Mercado, who recruited him to RMM Records. Together they globalized the Latin record industry, converting starry-eyed local vocalist Marc Anthony & India from buzz act, to icons. Within months, the budding apprentice was globe-trotting with Superstars, Celia Cruz & Tito Puente. Under Falcones’ management, these stars collected a bevy of international awards & were immortalized via ‘Hollywood Walk of Fame’ slots.    

Mr. Falcones received a degree in Business from La Guardia College, New York, New York in 1991.

 

Michael Nagle , 53, Director has spent more than 25 years in the media business working for SONY/Columbia Records, The Box Music Network, Bloomberg LP, Playboy, FlixFling and NatureVision TV. He is Chairman & CEO of Ashling Digital, Inc. With Ashling, Michael represents Veronica Pin Up NY (with whom he co-created and co-Produced the docu-series “PINNED”), Malone Vision and LAGO Subscriptions. In 2016, Michael was named President of GetCast, the comprehensive platform for media subscription, casting professionals and actors.

 

From 2000-05, Michael managed Bloomberg’s television and advanced subscription development businesses. He represented Bloomberg and also worked on behalf of independent programmers with the Federal Communications Commission on both Broadcast Must-Carry regulation and also opposing A La Carte Packaging regulation. He was named one of the Digital Drivers in the Media industry by Home Media Magazine both in 2016 and 2017 for his efforts on behalf of FlixFling and Invincible Pictures Studios. Viva Entertainment Group added Michael to their Board of Directors in 2017. Michael also serves as Executive Vice President of Advertising for the Social & Interactive Media Consortium (SIMC) and consults for Vidillion on New Business Development.

 

Michael is a native of Manhattan. He currently lives with his wife, Jodi and two children on Long Island.

 

Mr. Anthony Hernandez , 45, Director, is a seasoned executive with a specialized emphasis in Spanish Language efforts. Currently serves as CEO for Oi2, which he Co-founded and built into the largest Spanish language radio network in the U.S. Oi2's current footprint spans throughout the digital space and across territorial broadcast and digital media presence in 33 countries via a network of 1,700+ radio station affiliations and digital distribution on mobile and satellite media platforms including iHeart Radio, TuneIn, SiriusXM Satellite Radio and more.

As a premium provider of content, Oi2 operates a slate of 24x7 audio streams with a diverse menu of music, news, sports, and entertainment genres. Plus over 100+ daily marquee branded content features, talk and specialty shows. Some of the Oi2 menu of brands include CNN en Espanol; FOX Deportes; AP News en Espanol; ESPN Deportes Radio; ALMA Exitos Positivos; Escuchame Tu Show Prep Service.

 

Mr. Hernandez was a previous Hispanic media voice to Congressional Hispanic Caucus and FCC on advocacy for minority media interests. He Co-founded Spanish Broadcasters Association to address Hispanic issues as an advocate group before the FCC and other relevant organizations. Also serving as a member of the policy committee for the Minority Media & Telecommunications Council and as Co-Chair of the finance committee for the National Association of Multicultural Digital Entrepreneurs.

 

During his tenure in media related efforts he has been able to work-in, develop, and manage various efforts in most communications disciplines: Broadcast & Satellite Television and Radio; Print; Online; Mobile Media; Grass-roots/Event Marketing, and much more. Launched over 23 of the most popular radio content brands in national Spanish radio (i.e.: EXA, NFL en Espanol, E! Entertainment en Espanol, Billboard Radio en Espanol, El Cucuy, El Chulo y La Bola, etc.).

 

Mr. Hernandez is attributed with launching the first ever Hispanic formatted satellite radio channels on a global basis available by satellite radio to all of Europe, Asia, Africa, and Australia. Under his management some of the most popular personality driven Hispanic radio shows and branded Spanish language content have become globally syndicated. He is responsible for repurposing several marquee general market brands into Spanish language formatted radio brands and audio formats.

 

  ( 32 )  

 

 

Audit Committee Financial Expert

 

The functions of the Audit Committee are currently carried out by our Board of Directors. Our Board of Directors has determined that we do not have an audit committee financial expert on our Board of Directors carrying out the duties of the Audit Committee. The Board of Directors has determined that the cost of hiring a financial expert to act as a director and to be a member of the Audit Committee or otherwise perform Audit Committee functions outweighs the benefits of having a financial expert on the Audit Committee. Our Board of Directors has three members, two of whom are independent directors.

 

Code of Ethics

 

We have not adopted a code of ethics that applies to our President, Chief Executive Officer, Secretary, Treasurer, Chief Financial Officer, or persons performing similar functions, because of the small number of persons involved in the management of the Company.

 

Compliance with Section 16 (a) of the Exchange Act  

 

Under Section 16(a) of the Exchange Act, requires that our directors and executive officers and persons who beneficially own more than 10% of our Common Stock (referred to herein as the “Reporting Persons”) file with the SEC various reports as to their ownership of and activities relating to our Common Stock. Such Reporting Persons are required by the SEC regulations to furnish us with copies of all Section 16(a) reports they file. Based solely upon our review of the copies of the forms we have received and representations that no other reports were required, we believe that all Reporting Persons complied on a timely basis with all filing requirements applicable to them with respect to transactions during fiscal year ended October 31, 2018 except as stated below.  

 

Conflicts of Interest

None.

 

  ( 33 )  

 

 

 

ITEM 11. EXECUTIVE COMPENSATION

 

EXECUTIVE COMPENSATION  

 

The following table sets forth information concerning the compensation of our named executive officers during 2018, 2017 and 2016 through the date of this filing. 

 

 Summary Compensation Table   

 

                            Long-Term Compensation Payouts
        Annual Compensation            
                                     
Names 
Executive 
Officer and 
Principal
      Salary   Bonus   Other 
Annual 
Compensation
  Under 
Options/ 
SARs 
Granted
  Awards Securities 
Restricted 
Shares or 
Restricted 
Share/Units
  LTIP
Payouts
  Other
Annual
Compensation
Position   Year   (US$)   (US$)   (US$)   (#)   (US$)   (US$)   (US$)
                                     
Johnny Falcones President, Chief Executive Officer, Director     2018     $ 150,000       15 %      PPQ [1]          0       0       0       0       0  
      2017     $ 150,000       15 %      PPQ       0       0       0       0       0  
      2016     $ 150,000       15 %     PPQ       0       0       58,000,000       0       0  
                                                                         
Anthony Hernandez Director     2018       0       0               0       0       0       0       0  
      2017       0       0               0       0       0       0       0  
      2016       0       0               0       0       1,000,000       0          
                                                                         
Michael Nagle Director     2018       0       0               0       0       0       0       0  
      2017       0       0               0       0       0       0       0  
      2016       0       0               0       0       1,000,000       0       0  
                                                                         
John Sepulveda VP Latin America     2018     $ 120,000       0               0       0       500,000       0       0  
      2017     $ 120,000       0               0       0       500,000       0       0  
      2016     $ 120,000       0               0       0       1,000,000       0       0  

  

[1] PPQ: “PPQ” means Profit Per Quarter for both 2016-2018

Outstanding Equity Awards at Fiscal Year End 

The following table provides information concerning equity awards as of our fiscal year end, October 31, 2018, held by our named executive officers. 

Name  

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable

 

Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable

 

Equity

Incentive

Plan Awards:

Number of

Securities

Underlying

Unexercised

Unearned

Options (#)

 

Option

Exercise

Price ($)

 

Option

Expiration

Date

 

Number of

Shares of

Stock That

Have Not

Vested (#)

 

Market

Value of

Shares of

Stock That

Have Not

Vested (#)

 

Equity

Incentive

Plan Awards:

Number of

Unearned

Shares,

Shares or

Other Rights That

Have Not

Vested (#)

 

Equity

Incentive

Plan Awards:

Market or

Payout

Value of

Unearned

Shares,

Shares or

Other Rights That

Have Not

Vested ($)

 
(a)     (b)       (c)       (d)       (e)       (f)       (g)       (h)       (i)       (j)    
                                                                           
      0       0       0       0       0       0       0       0       0    

  

DIRECTOR COMPENSATION  2016-2018
 
Name  

Fees

Earned or

Paid in Cash

 

Stock

Awards

 

Option

Awards

 

Non-Equity

Incentive

Plan Compensation

 

Change in

Pension Value

and Nonqualified

Deferred

Compensation

Earnings

 

All Other

Compensation

  Total
Anthony Hernandez     0       1,000,000       0       0       0       0       1,000,000  
Michael Nagle     0       1,000,000       0       0       0       0       1,000,000  
Johnny Falcones   $ 150,000.00       58,000,000       0       0       0       15% PPQ [2]       58,000,000  

  [2] PPQ: “PPQ means Profit Per Quarter for 2016-2018

 

 

 

 

  ( 34 )  

 

 

Option Grants. No option grants have been exercised by the executive officers named in the Summary Compensation Table.

Aggregated Option Exercises and Fiscal Year-End Option Value. There have been no stock options exercised by the executive officers named in the Summary Compensation Table.

Long-Term Incentive Plan (“LTIP”) Awards. There have been no awards made to a named executive officers in the last completed fiscal year under any LTIP.

Compensation of Directors

Directors are permitted to receive fixed fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors. Anthony Hernandez has been compensated in the form of an issuance of 1,000,000 shares of our common stock. Michael Nagle has been compensated in the form of an issuance of 1,000,000 shares of our common stock.   

Employment Agreements

 

On April 15, 2016, we entered into an employment agreement with Edwin Batiz. For each of the twelve-month periods during the two-year employment period, commencing with the twelve-month period beginning on the commencement date (each such period, an "Employment Year"), we will compensate Mr. Batiz for services to be rendered by him at the per annum rate determined by the Board (the "Base Compensation"), payable in accordance with our customary payroll practices. The Base Compensation may be increased as and whenever determined in the sole discretion of the Board. Mr. Batiz shall be entitled to health insurance during his employment with us.

Year 2: 2,500,000 restricted common shares

We also issued to Mr. Batiz 2,500,000 restricted common shares, upon the execution of this agreement, as fully paid and non-assessable shares restricted common stock for services rendered to us under this agreement. 

On April 15, 2016, we entered into an Employment Agreement with Johnny Falcones as its Chairman and CEO. This agreement is for a period of five years, unless terminated earlier as contractually provided. Upon the execution of the Agreement, Mr. Falcones was due 58,000,000 shares of common stock. Additionally, we will compensate Mr. Falcones for services to be rendered by him at the per annum rate of One Hundred Fifty Thousand dollars and 00/100 ($150,000) (the "Base Compensation"), payable in accordance with our customary payroll practices. In addition to his Base Compensation, Mr. Falcones shall also receive a quarterly bonus in the amount of Fifteen Percent (15%) of Company profits made quarterly. Mr. Falcones is also in control of 75 million preferred shares with special voting rights. ( See Supra)

 

On April 20, 2016, we entered into an employment agreement with Alberto Gomez. For each of the twelve-month periods during the five-year employment period, commencing with the twelve-month period beginning on the commencement date (each such period, an "Employment Year"), we will compensate Mr. Gomez for services to be rendered by him at the per annum rate of One hundred Twenty dollars and 00/100 ($120,000) (the "Base Compensation"), payable in accordance with our customary payroll practices. The Base Compensation may be increased as and whenever determined in the sole discretion of the Board. Mr. Gomez shall be entitled to health insurance during his employment with us.

Year 2: 2,500,000 restricted common shares

Year 3: 2,500,000 restricted common shares

Year 4: 2,500,000 restricted common shares

Year 5: 2,500,000 restricted common shares

 

  ( 35 )  

 

The Company will issue to Mr. Gomez 2,000,000 restricted common shares, upon the execution of this agreement, as fully paid and non-assessable shares restricted common stock for services rendered to us under this agreement.

 

On April 20, 2016, we entered into an employment agreement with John Sepulveda. For each of the twelve-month periods during the five-year employment period, commencing with the twelve-month period beginning on the commencement date (each such period, an "Employment Year"), we will compensate Mr. Sepulveda for services to be rendered by him at the per annum rate of One hundred Twenty Thousand dollars and 00/100 ($120,000) (the "Base Compensation"), payable in accordance with our customary payroll practices. The Base Compensation may be increased as and whenever determined in the sole discretion of the Board. Mr. Sepulveda shall be entitled to health insurance during his employment with us.

Year 2: 500,000 restricted common shares

Year 3: 500,000 restricted common shares

Year 4: 500,000 restricted common shares

Year 5: 500,000 restricted common shares

We also issued to Mr. Sepulveda 1,000,000 restricted common shares, upon the execution of this agreement, as fully paid and non-assessable shares restricted common stock for services rendered to us under this agreement.

Mr. Sepulveda will also be paid a bonus upon execution of the contract. He shall receive a 5% cash bonus based on profits made quarterly. 

There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officers and directors other than as described herein.

 

Stock Incentive Plan

 

On December 11, 2017, the Company filed an S-8 registration for an employee stock option plan. At present, the registration is active once filed and is currently in use by the Company as an incentive to issue common stock upon exercise of options to employees, directors, officers, consultants, advisors and other persons associated with the Company pursuant to the Stock Plan. Moreover, according to the Stock Plan, common stock may be issued and the beneficiary will have the ability to use his or her shares immediately, without the usual 6-month restriction. The plan was approved by the Board of Directors of the Company and is intended to provide a method whereby the Company may be stimulated by the personal involvement of its employees, directors, officers, consultants, advisors and other persons in the Company’s business and future prosperity, thereby advancing the Company’s interests and all of its shareholders. A copy of the Stock Plan has been filed with the SEC.

 

Indemnification

 

Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Nevada.

 

Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.

 

 

  ( 36 )  

 

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by the Company officers, directors, and key employees, individually and as a group, and the present owners of 5% or more of its total outstanding shares. The table also reflects what the percentage of ownership will be assuming completion of the sale of all shares in this offering, which cannot be guaranteed.  The stockholders listed below have direct ownership of their shares and possess sole voting and dispositive power with respect to the shares.

Common Stock  

Name of

Beneficial Owner

 

No. of

Shares

 

Number of Securities

Underlying

Options That Are Unexercised

 

Percentage

of Ownership

Before Offering (1)(2)

             
Anthony Hernandez(4)     2,000       0       —   %
Johnny Falcones(5)     403,259       0       1.3 %
John Sepulveda(6)     44,000       0       0.1 %
Michael Nagle(7)     2,000       0       —   %
All Officers and
Directors as a Group
    451,259       0       1.4 %

 

(1) All ownership is beneficial and of record, unless indicated otherwise based on shares outstanding as of the date of this filing.
(2) Based on 32,278,463 shares issued and outstanding.
(4) Mr. Hernandez is a member of the Board of Directors
(5) Mr. Falcones is the current Chief Executive Officer and a Director as well.
(6) Mr. Sepulveda oversees the Latin America Division.
(7) Mr. Nagle is a member of the Board of Directors.

  

Preferred Stock

 

As noted Supra , the Company’s authorized capital stock consists of 75,000,000 shares of preferred stock, par value $0.0001 per share. The voting powers and preferences, the relative rights of each such series and the qualifications, limitations and restrictions of each series has been established by the Board of Directors. Our directors may issue preferred stock with multiple votes per share and dividend rights which would have priority over any dividends paid with respect to the holders of our common stock. The issuance of the preferred stock with these rights may make the removal of management difficult even if the removal would be considered beneficial to shareholders generally, and will have the effect of limiting shareholder participation in transactions such as mergers or tender offers if these transactions are not favored by our management. As of the date of this prospectus, we have issued 75,000,000 shares of preferred stock that remain in the custody and control of Mr. Falcones. Those shares of preferred stock allow Mr. Falcones to have special or super voting rights where 1 share of preferred stock is equal to 100 votes of common stock shares. Moreover, the preferred shares allow Mr. Falcones to appoint officers and directors without shareholder approval. The preferred shares cannot be converted into common stock.

 

  ( 37 )  

 

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

In connection with the acquisition of Viva Entertainment and the resignation of our former officers and directors, the Company received forgiveness of stock payable of $3,390,000 and amounts due to directors of $132,854. These amounts were written off prior to closing and have therefore not been included in the Statement of Equity. 

 

The detail composition of the $535,338 in accrued wages with related parties as of October 31, 2018 includes the following due to officers and directors: Johnny Falcones $186,331 and John Sepulveda $165,226. In addition, $183,781 is owed to Alberto Gomes, a former director, for prior wages. This accrual covered services rendered by the employees for the period from April, 2016 through October 31, 2018 less payments made to such employees during the period.

 

We issued to Edwin Batiz 2,500,000 restricted common shares, upon the execution of a services agreement, as fully paid and non-assessable shares restricted common stock for services rendered under this agreement.

 

Common Stock Payable includes $1,808,250 and $3,079,200 in stock payable with related parties as of October 31, 2018 and 2017, respectively. This stock payable is due to unissued shares earned on the employment agreements and for services performed during the years ended October 31, 2018, 2017 and 2016. 

 

John Sepulveda, a Company director, funded $10,000 to the Company for working capital during the year ended October 31, 2016. This amount was repaid during the 2017 fiscal year.

 

The Company periodically receives cash advances from officers and directors or their family members for routine working capital purposes. As of October 31, 2018 and 2017, a balance of $64,270 and $66,070 was owed to the spouse of the Company’s Chief Executive Officer. The advance is non-interest bearing and payable on demand.

 

In accordance with FASB ASC 210-10-05-3, the Company has established a technological feasibility date, the software development costs have been analyzed and it has been determined that all software development costs were incurred subsequent to the feasibility date. The useful life of capitalized software costs has been assumed to be 3 years. Total software development costs were $68,553 and the appropriate amortization has been taken, also in accordance with FASB ASC 210-10-05-3.

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

The aggregate fees billed for the fiscal years ended October 31, 2018 and 2017 for professional services rendered by the principal accountant for the audit of its annual financial statements included in Form 10-K (“Audit Fees”), (2) tax compliance, advice, and planning (“Tax Fees”), and (iv) other products or services provided (“Other Fees”) and for professional services rendered by company’s legal attorney:

 

    Year Ended 
October 31,
2018
  Year Ended 
October 31,
2017
Accounting Fees   $ 59,497     $ 26,000  
Legal   $ 690,298     $ 0  
Tax Fees   $ 0     $ 0  
All Other Fees   $ 0     $ 0  
Total   $ 749,795     $ 26,000  

 

  ( 38 )  

 

 

PART IV

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

Exhibit No. Description
  3.1 (1) Articles of Incorporation
  3.2 (2) Amendment to Articles of Incorporation
  3.3 (6) Amendment to the Certificate of Incorporation
  3.3 (1) Bylaws
  10.1 (2) Stock Purchase Agreement, dated December 17, 2012, by and among Black River Petroleum Corp. (f/k/a Farmacia Corporation), Irina Cudina and Alexander Stanbury.
  10.2 (3) Lease Agreement by and between Black River Petroleum Corp. (f/k/a American Copper Corp.) and Regus Group, dated December 13, 2012.
  10.3 (4) Mineral Property Acquisition Agreement, dated March 25, 2013, by and among Black Rive Petroleum Cor. (f/k/a American Copper Corp.), and US Copper Investments, Ltd.
  10.4 (4) Mineral Property Transfer Agreement, dated March 25, 2013, by and among Black Rive Petroleum Cor. (f/k/a American Copper Corp.), US Copper Investments, Ltd, and Ruza
  10.5 (5) Investment Agreement, dated July 3, 2013, by and among Black Rive Petroleum Cor. (f/k/a American Copper Corp.), and US Copper Investments, Ltd.
  10.6 (6) Purchase and Sale Agreement, dated October 17, 2013, by and among Black River Petroleum Corp. (f/k/a American Copper Corp.) and American Land and Exploration Company.
  10.7 (7) Employment Agreement, dated December 1, 2013, by and among Black River Petroleum Corp. and Alexander Stanbury
  31.1   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
  32.1*   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
       
  101.INS **   XBRL Instance Document
  101.SCH**   XBRL Taxonomy Schema
  101.CAL**   XBRL Taxonomy Calculation Linkbase
  101.DEF**   XBRL Taxonomy Definition Linkbase
  101.LAB**   XBRL Taxonomy Label Linkbase
  101.PRE**   XBRL Taxonomy Presentation Linkbase

 

(1) Incorporated by reference to the Company’s Registration Statement on Form S-1 filed with the SEC on December 18, 2009.
(2) Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on December 28, 2012.
(3) Incorporated by reference to the Company’s Annual Report on Form 10-K filed with the SEC on January 30, 2013.
(4) Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on March 28, 2013.
(5) Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on July 10, 2013.
(6) Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on November 1, 2013.
(7) Incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on December 11, 2013.

 

*In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

** Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

  ( 39 )  

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 28th day of February, 2019.

 

  VIVA ENTERTAINMENT GROUP INC.
   
  /s/ Johnny Falcones
 

Johnny Falcones

President, Chief Executive Officer, and Chief Financial Officer

(Duly Authorized, Principal Executive and Principal Financial Officer)

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities  and on the dates indicated

 

Signature      Title      Date   
         
/s/ Johnny Falcones   President, Chief Executive Officer,    
Johnny Falcones   Chief Financial Officer, and Director   February 28, 2019

 

 

   

  ( 40 )  

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