UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2017

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

For the transition period from:

 

Commission file number: 000-54567

 

VINCOMPASS CORP.

 

(Exact name of small business issuer in its charter)

 

Wyoming   80-0552115

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

795 Folsom Street, 1 st Floor, San Francisco, CA   94107
(Address of principal executive offices)   (Zip Code)

 

Issuer’s telephone number: (415) 817-9955

 

Securities Registered Under Section 12(b) of the Exchange Act: None

 

Securities Registered Under Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value

(Title of class)

 

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.

[X] Yes [  ] No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [  ] No (Not required)

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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.

 

 

Large accelerated filer [  ]

Non-accelerated filer [  ]

Emerging growth company [  ]

Accelerated filer [  ]

Smaller reporting company [X]

 

 

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

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[  ] Yes [X] No

 

As of October 10, 2017 , there were 1,381,335,960 common shares of the registrant’s $0.001 par value common stock issued and outstanding.

 

 

 

     
   

 

VINCOMPASS CORP.

TABLE OF CONTENTS

 

    Page
     
PART I. FINANCIAL INFORMATION  
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) F-1
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 7
ITEM 4. CONTROLS AND PROCEDURES 7
     
PART II. OTHER INFORMATION  
ITEM 1. LEGAL PROCEEDINGS 7
ITEM 1A. RISK FACTORS 8
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 8
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 8
ITEM 5. OTHER INFORMATION 8
ITEM 6. EXHIBITS 9

 

Special Note Regarding Forward-Looking Statements

 

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of VinCompass Corp. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

 

* Please note that throughout this Quarterly Report, and unless otherwise noted, the words “we,” “our,” “us,” the “Company,” “VCPS,” or “VinCompass” refers to VinCompass Corp.

 

2
 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

INDEX F-1
Consolidated Balance Sheets as of August 31, 2017 and February 28, 2017 (Unaudited) F-2
Consolidated Statements of Operations for the Three and Six Months Ended August 31, 2017 and 2016 (Unaudited) F-3
Consolidated Statements of Cash Flows for the Six Months Ended August 31, 2017 and 2016 (Unaudited) F-4
Notes to the Consolidated Financial Statements (Unaudited) F-5

 

F- 1
 

 

VinCompass Corp.

Consolidated Balance Sheets

(Unaudited)

 

 

    August 31, 2017     February 28, 2017  
ASSETS                
                 
Current Assets:                
Cash   $ 775     $ 13,952  
Total Current Assets     775       13,952  
                 
TOTAL ASSETS   $ 775     $ 13,952  
                 
LIABILITIES & STOCKHOLDER’S DEFICIT                
                 
Current Liabilities:                
Accounts payable and accrued liabilities   $ 244,667     $ 195,302  
Accrued payroll     206,000       216,000  
Accounts Payable to related parties     361,611       289,281  
Convertible notes payable, net of unamortized discount of $62,772 and $73,281, respectively     283,944       259,981  
Derivative liability     259,823       112,461  
Total Current Liabilities     1,356,045       1,073,025  
                 
Total Liabilities   $ 1,356,045     $ 1,073,025  
                 
Stockholders’ Deficit:                
Series A Preferred Stock, $0.001 par value; 40,000,000 and 2,000,000 shares authorized; 5,000,000 and 1,000,000 shares issued and outstanding, respectively   $ 5,000     $ 1,000  
Series B Preferred Stock, $0.50 par value; 40,000,000 and 0 shares authorized; no shares issued and outstanding     -       -  
Series C Preferred Stock, $0.001 par value; 20,000,000 and 0 shares authorized; 10,000,000 and 0 shares issued and outstanding     10,000       -  
Common Stock, $0.001 par value; 9,900,000,000 and 400,000,000 shares authorized; 583,876,061 and 47,149,371 shares issued and outstanding, respectively     583,875       47,149  
Additional Paid-in Capital     2,482,455       1,890,147  
Accumulated Deficit     (4,436,600 )     (2,997,369 )
                 
Total Stockholders’ Deficit     (1,355,270 )     (1,059,073 )
                 
TOTAL LIABILITIES & STOCKHOLDERS' DEFICIT   $ 775     $ 13,952  

 

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

 

F- 2
 

 

VinCompass Corp.

Consolidated Statements of Operations

(Unaudited)

 

 

    For the Three Months Ended     For the Six Months Ended  
    August 31,     August 31,  
    2017     2016     2017     2016  
                         
General & administrative expenses   $ 230,385     $ 204,057     $ 570,263     $ 359,117  
Total operating expenses     230,385       204,057       570,263       359,117  
                                 
Loss from operations     (230,385 )     (204,057 )     (570,263 )     (359,117 )
                                 
Other expense:                                
Interest expense     (76,475 )     (7,670 )     (279,184 )     (7,670 )
Loss on derivative     (252,434 )     -       (589,784 )     -  
Total other expense     (328,909 )     (7,670 )     (868,968 )     (7,670 )
Net loss   $ (559,294 )   $ (211,727 )   $ (1,439,231 )   $ (366,787 )
                                 
Basic loss per share   $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.01 )
                                 
Basic weighted average shares     278,697,179       43,772,368       173,919,448       43,737,193  

 

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

 

F- 3
 

 

VinCompass Corp.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

    For the Six Months Ended
August 31, 		 
    2017     2016  
Cash flow from operating activities:                
Net loss   $ (1,439,231 )   $ (366,787 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Stock based compensation     172,400       85,760  
Amortization of debt discount     270,179       7,000  
Fees added to convertible note principal     6,000       -  
Loss on derivative liabilities     589,784       -  
Changes in operating assets and liabilities:                
Accounts payable to related party     72,330       37,307  
Accrued payroll     60,000       60,000  
Accounts payable and accrued expenses     61,711       (18,969 )
Net cash used in operating activities     (206,827 )     (195,689 )
                 
Cash flows from financing activities:                
Proceeds from convertible debt, net of OID     193,650       60,000  
Borrowings from related party     -       42,183  
Repayment of related party debt     -       (1,000 )
Proceeds from the sale of common stock     -       79,500  
Net cash provided by financing activities   $ 193,650     $ 180,683  
                 
Net decrease in cash     (13,177 )     (15,006 )
Cash at beginning of period     13,952       43,680  
Cash at end of period   $ 775     $ 28,674  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:                
Cash paid during the period                
Interest   $ -     $ -  
Income taxes   $ -     $ -  
                 
Supplemental disclosure of noncash activities:                
Settlement of deferred payroll by issuance of Series C Preferred stock   $ 30,000     $ -  
Settlement of deferred payroll by issuance of Series A Preferred stock   $ 40,000     $ -  
Release of derivative liabilities due to conversion of convertible debt   $ 682,422     $ -  
Debt discount recognized from derivative liabilities   $ 240,000     $ -  
Common shares issued for conversion of convertible note   $ 218,212     $ -  

 

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

 

F- 4
 

 

VINCOMPASS CORP .

Notes to the Consolidated Financial Statements

August 31, 2017

(Unaudited)

 

NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS

 

VinCompass Corp. (Formerly known as Tiger Jiujiang Mining, Inc.), entered into a Share Exchange Agreement with VinCompass, whereby VinCompass Corp. exchanged 60% of its outstanding shares of common stock for 100% of the outstanding shares of VinCompass common stock. As of the closing date, VinCompass will operate as a wholly owned subsidiary of VinCompass Corp.

 

On March 7, 2017, the Board approved and filed an Amended & Restated Articles of Incorporation with the Secretary of State of Wyoming whereby: the aggregate number of shares of all classes of capital stock which this Corporation shall have authority to issue is 1,000,000,000 shares, of which 40,000,000 shares shall be shares of preferred stock, par value of $.001 per share as described herein (“Preferred Stock”), and 960,000,000 shares shall be shares of common stock, par value of $.001 per share (“Common Stock”).

 

On May 8, 2017, the Board approved and filed an Amended & Restated Articles of Incorporation with the Secretary of State of Wyoming to: (i) increase our authorized common stock to 5,000,000,000 shares, of which 40,000,000 shares shall be shares of preferred stock, par value of $.001 per share as described herein (“Preferred Stock”), and 4,960,000,000 shares shall be shares of common stock, par value of $.001 per share (“Common Stock”).

 

On August 2, 2017, the Board approved and filed an Amended & Restated Articles of Incorporation with the Secretary of State of Wyoming whereby: the aggregate number of shares of all classes of capital stock which this Corporation shall have authority to issue is 10,000,000,000 shares, of which 100,000,000 shares shall be shares of preferred stock as described herein (“Preferred Stock”), and 9,900,000,000 shares shall be shares of common stock, par value of $.001 per share (“Common Stock”).

 

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

The accompanying unaudited consolidated interim financial statements of VinCompass Corp have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ended February 28, 2018. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended February 28, 2017 as reported on Form 10-K have been omitted.

 

NOTE 3 – GOING CONCERN

 

The accompanying unaudited financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has had no revenue to date, has an accumulated deficit of $4,436,600 as of August 31, 2017 and a net loss of $1,439,231 for the six months ended August 31, 2017. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

While the Company is attempting to increase operations and generate revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. The Company will continue to pursue additional equity and/or debt financing while managing cash flows from operations in an effort to provide funds to meet its obligations on a timely basis and to support future business development. There is no assurance that these efforts will be successful. Management believes that the actions presently being taken to further implement its business plan and generate additional revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate additional revenues and in its ability to raise the additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plans and generate additional revenues.

 

The financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may result should the Company be unable to continue as a going concern.

 

F- 5
 

 

NOTE 4 – COMMON STOCK

 

On August 2, 2017, the Board approved and filed an Amended & Restated Articles of Incorporation with the Secretary of State of Wyoming whereby: the aggregate number of shares of all classes of capital stock which this Corporation shall have authority to issue is 10,000,000,000 shares, of which 100,000,000 shares shall be shares of preferred stock as described herein (“Preferred Stock”), and 9,900,000,000 shares shall be shares of common stock, par value of $.001 per share (“Common Stock”).

 

During the three months ended May 31, 2017, the Company issued 9,000,000 shares of common stock for services to third parties. The shares were issued at $0.0011 based on the closing price on the date of grant for total non-cash expense of $9,900.

 

During the three months ended May 31, 2017, the Company issued 91,173,404 shares of common stock for conversion of principal of $139,749 and accrued interest of $7,456.

 

During the three months ended August 31, 2017, the Company issued 75,000,000 shares of common stock for services to third parties. The shares were issued at $0.0003 based on the closing price on the date of grant for total non- cash expense of $22,500.

 

During the three months ended August 31, 2017, the Company issued 361,553,286 shares of common stock for conversion of principal of $66,117 and accrued interest of $4,890.

 

NOTE 5 – PREFERRED STOCK

 

Series A

Series A Preferred Stock consists of 40,000,000 shares, par value $0.001. Series A stock shall have 100:1 voting rights, no conversion rights, and no redemption rights. The Series A holders are entitled to dividends if declared and have no liquidation preferences.

 

During the three months ended May 31, 2017, the Company issued 4,000,000 shares of Series A preferred stock to settle $40,000 of accrued payroll due to the CEO. The fair value of the shares is determined to be $180,000 using the weighted-average stock price during the three months ended May 31, 2017. The surplus of $140,000 is recorded as stock based compensation expense.

 

Series B

Series B Preferred Stock consists of 40,000,000 shares, par value $0.50. Series B stock has no voting rights and is convertible into common stock at a 50% discount to the average of the lowest three trades in the previous ten days before conversion. There are no redemption rights and no liquidation preferences. The Series B holders are entitled to dividends if declared

 

Series C

Series C Preferred Stock consists of 20,000,000 shares, par value $0.001. Series C stock shall have 1,000:1 voting rights and is convertible into common stock at one for ten shares of common. There are no redemption rights and no liquidation preferences. The Series C holders are entitled to dividends if declared

 

On August 31, 2017, the Company issued 10,000,000 shares of Series C preferred stock to settle $30,000 of accrued payroll due to the CEO. The shares were valued using the closing price of the common stock on August 31, 2017.

 

NOTE 6 – RELATED PARTY TRANSACTIONS

 

As of August 31, 2017, the amount due to the majority shareholder and a director bear no interest and with no stated repayment terms totaled $361,611 ($289,281 as at February 28, 2017) arose from payments made on behalf of the Company, including by private credit.

 

As of August 31, 2017, the Company had an accrued payroll expense of $206,000 ($216,000 as at February 28, 2017), after converting $70,000 of the amount owing into 14,000,000 Preferred Shares. See Note 5.

 

F- 6
 

 

NOTE 7 – CONVERTIBLE NOTES PAYABLE

 

The following table summarizes the convertible notes as of August 31, 2017:

 

Note #   Date   Maturity Date     Convertible Date   Interest     Balance
May 31, 2017 		    Additions     Conversions     Balance
August 31, 2017 		 
1   7/7/2016     7/7/2017     1/7/2017     10 %   $ 29,482             $ (29,482 )   $ -  
2   8/15/2016     8/15/2017     2/15/2017     10 %     33,500               (33,500 )     -  
3   9/28/2016     9/28/2017     3/28/2017     10 %     73,500       6,000 (1)     (38,060 )     41,440  
4   10/20/2016     10/20/2017     4/18/2017     0 %     60,000               (60,000 )     -  
5   10/28/2016     7/28/2017     4/26/2017     10 %     78,750               (39,624 )     39,126  
6   2/22/2017     11/30/2017     6/21/2017     10 %     58,000               (5,200 )     52,800  
7   3/15/2017     3/15/2018     9/11/2017     10 %             37,000       -       37,000  
8   3/28/2017     3/28/2018     9/24/17     8 %             45,850       -       45,850  
9   4/10/2017     1/15/2018     10/7/2017     10 %             38,000       -       38,000  
10   5/16/2017     2/25/2018     11/12/2017     10 %             53,000       -       53,000  
11   7/11/2017     demand     1/12/2018     10 %             11,000       -       11,000  
12   8/3/2017     8/3/2018     1/30/2017     10 %             28,500               28,500  
                            $ 333,232       219,350     $ (205,866 )   $ 346,716  
          Less Debt Discount:             (73,251 )                     (62,772 )
                            $ 259,981                     $ 283,944  

 

(1) $6,000 added to principle for fees related to conversions.

 

These notes become convertible six months after the dates of agreement at a variable conversion price.

 

The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion features.

 

Convertible note holders have the option to convert the note plus accrued interest into shares of the Company’s common stock after six months, at a certain discount of the average of the lowest trading prices for the previous 20 days prior to the conversion date. The Company determined the embedded conversion feature as a derivative liability, and recorded at fair value as of August 31, 2017. For certain notes a $500 to $1,000 fee for costs associated with converting and clearing stock is added to the amount being converted with an adjustment to the conversion price.

 

A summary of the activity of the derivative liability for the period ended August 31, 2017 is as follows:

 

Balance at February 28, 2017   $ 112,461  
Derivative discount    

240,000

 
Increase to derivative due to new issuance     328,601  
Decrease in derivative due to conversion of debt     (682,422 )
Derivative loss due to mark to market adjustment     261,183  
Balance at August 31, 2017   $ 259,82 3  

 

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liabilities that are categorized within Level 3 of the fair value hierarchy for the quarter ended August 31, 2017 is as follows:

 

Date of valuation     August 31, 2017       Inception  
Volatility     365% - 417 %     247% - 351 %
Risk-free rate     .92% - 1.38 %     .61% - 1.01 %
Years to maturity     .25 –.33       .25 - .5  

 

The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximates the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at August 31, 2017.

 

F- 7
 

 

    Fair value measured at August 31, 2017  
   

Fair value at 

August 31, 2017

   

Quoted prices in

active markets

(Level 1)

   

Significant other

observable

inputs (Level 2)

   

Significant 

unobservable 

inputs (Level 3)

 
Derivative liabilities   $ 259,823     $ -     $ -     $ 259,823  

 

NOTE 8 - SUBSEQUENT EVENTS  

 

Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued, and has determined that no material subsequent events exist other than the following.

 

Subsequent to August 31, 2017, the Company issued 797,459,899 shares of common stock for conversion of principal of $75,926 of convertible debt. 

 

F- 8
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Cautionary Statement Regarding Forward-Looking Statements

 

The following Management’s Discussion and Analysis should be read in conjunction with VinCompass Corp. financial statements and the related notes thereto. The Management’s Discussion and Analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect,” and the like, and/or future-tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this Report on Form 10-Q. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Report on Form 10-Q.

 

As used in this quarterly report, the terms “we”, “us”, “our”, and “Company” shall mean “VinCompass” where events are referenced.

 

Our financial statements are stated in United States Dollars (“USD” or “US$” or “$”) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to “common shares” refer to the common shares in our capital stock.

 

The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this Quarterly Report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Annual Report, particularly in the section entitled “Risk Factors”.

 

We are a development stage company and have not generated material revenue to date. We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

 

As a result of Closing the Share Exchange Agreement as filed with the Commission on November 25, 2015 in the Company’s current report on Form 8-K, the registrant is no longer a shell corporation as that term is defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act.

 

We were incorporated in the State of Wyoming on January 20, 2010, as Tiger Jiujiang Mining, Inc. and established a fiscal year end of February 28. Our statutory registered agent’s office is located at 1620 Central Avenue, Suite 202, Cheyenne, Wyoming 82001 and our business office is located at 795 Folsom Street, 1 st Floor, San Francisco, CA. Our telephone number is 415-817-9955.

 

On November 22, 2015, the Company, then under the name Tiger Jiujiang Mining, Inc., a Wyoming corporation (the “Company”) entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with VinCompass Corp., a California corporation (“VinCompass”), the shareholders of VinCompass (the “VinCompass Shareholders”), and the controlling stockholders of the Company (by unanimous vote) (the “Tiger Controlling Stockholders”). Pursuant to the Share Exchange Agreement, the Company acquired 5,200,000 (100%) shares of common stock of VinCompass from the VinCompass Shareholders (the “VinCompass Shares”) and in exchange issued 26,000,000 (59.77%) restricted shares of its common stock to the VinCompass Shareholders (the “Tiger Shares”). As a result of the Share Exchange Agreement, VinCompass became a wholly-owned subsidiary of the Company upon closing and the Company now carries on the business of VinCompass as its primary business. The Share Exchange Agreement contains customary representations, warranties and conditions to closing. The closing of the Share Exchange Agreement (the “Closing”) occurred on January 14, 2016 (the “Closing Date”).

 

3
 

 

As a result of the Share Exchange Agreement:

 

(a) each outstanding VinCompass Share was cancelled, extinguished and converted into and became the right to receive a pro rata portion of the Tiger Shares which equaled the number of VinCompass Shares held by each VinCompass Shareholder multiplied by the exchange ratio of 5(the “Exchange Ratio”). Based on the Exchange Ratio, as a result of the Share Exchange Agreement, the VinCompass Shareholders own a total of 26,000,000 restricted shares of common stock of the Company; and

 

(b) Pursuant to the Share Exchange Agreement, Ya-Ping irrevocably canceled a total of 25,000,000 restricted shares of common stock of the Company.

 

As a result of the Share Exchange Agreement, the VinCompass Shareholders own a total of 26,000,000 restricted shares of the Company, which represents 59.77% of our issued and outstanding shares of common stock. The Share Exchange Agreement is being accounted for as a “reverse acquisition,” as the VinCompass Shareholders own a majority of the outstanding shares of the Company’s capital stock immediately following the Closing of the Share Exchange Agreement. Accordingly, VinCompass is deemed to be the acquirer in the reverse acquisition. After the Closing of the Share Exchange Agreement, the Board of Directors and management of the Company are comprised of VinCompass’s management team and the operations of VinCompass are the continuing operations of the Company.

 

Business

 

VinCompass™ is an eCommerce platform built on patent pending technology that takes the guess work out of the wine buying equation for the consumer. We are working on multiple revenue streams focused on providing curated wine through our wine club, direct purchases via our App and private label wines with the majority of the revenue realized as recurring wine subscriptions. Our intelligent software platform determines an individual’s VinPrint™ (wine DNA preference) so consumers can purchase wine that meets their profile with alluring value and availability.

 

Plan of Operation and Results of Operations

 

Wine buying is a daunting task and for the average consumer, there has been no means to easily select wines to enjoy and cellar that matches preferences for taste and price. To help fill this void, a plethora of wine clubs have popped up on the internet which have failed to address this problem. The clubs push wine that provide them with the greatest margin rather than address the needs of the consumer. As a result, the membership renewals and reorder rates are well below those of other consumer product based clubs.

 

The solution is VinCompass™ a full-service personalized wine curator and eCommerce platform. Our wine club will provide members only wines that meet their individual VinPrint™ and at price levels determined by the consumer, providing enhanced membership renewals and reorder rates.

 

The Opportunity

 

Unlike the numerous .com wine sites and Apps that target retail wine enthusiasts looking to purchase wine, VinCompass™ addresses the unmet need to uniquely pair taste and budget. With mobile devices now enabling 100’s of millions of consumers to instantly fulfill their interests in music, sports, news and reading, VinCompass™ is poised to become the mobile app-enabled cloud service for consumers to discover, archive, socialize and acquire curated wines thus creating new opportunities to monetize the fast growing $1B$+/month e-wine marketplace.

 

For vineyards, it can be difficult and expensive to reach would-be customers. Unlike wine superstores who fail to connect boutique growers with the palate of discriminating drinkers, VinCompass™ employs a unique, patent-pending “VinPrint”™ to create a digital blue print of an individual’s’ wine preferences and then match those preferences with an inventory of more than 1 million wines and the wine lists of more than 10,000 restaurants. VinCompass™ creates a personalized one-to-one relationship with life-long customers that growers otherwise would not otherwise be able to establish and cultivate to scale.

 

For wine lovers, the rise of such unprecedented access may result in too many choices; Restaurant lists can seem like a set of encyclopedias with too many different value options. Regardless of wine knowledge, choosing wine can be intimidating or time consuming. The VinCompass™ mobile app quickly presents a list of nearby restaurants, whose wine lists they can peruse before even walking in the door. Before the sommelier hands over the wine list, VinCompass™ will help select the ideal bottle based on wine tastes, budget and food preferences.

 

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Our Brand and Products

 

App – VinCompass in the apple iTunes and Google Play

Web Site – eComm portal for Wine

 

Business Model

 

Both recurring and on-demand revenue in Wine eComm

 

● Recurring revenue generated from wine club & freemium subscriptions (akin to Amazon’s Prime)
   
● On-demand revenue generated from Virtual Vineyard, Private Label, Individually Branded, and Charity wines.
   
● Engagement with an App beginning with discovery in the restaurant
   
● Business Intelligence recurring revenue; Information and Insights for Restaurants and Wineries

 

Business Strategy

 

Invitation Only Model – We employ a complete Social graph network and full attribution for all members. Social as Members can invite other members to join and drive the social aspect.

 

Social Media Partnerships - We will service communities that have high affinity to wine consumers. These Partnerships get the advantage of providing significant benefits to their community that is not generally available. The members of VinCompass generally save about 16% on wine and yet enjoy wine more by 14% on average thanks to the Patent Pending Recommendation Engine. As well as ultimately enjoying a curated wine via eComm for consumption outside of the Restaurants.

 

Plan of Operation

 

Over the balance of the current fiscal year we intend to seek financing for the ongoing development of the VinCompass business plan and to further develop our business model. We will need to raise sufficient additional capital, for the work as well as for our administrative operations and working capital, through the sale of equity shares in the form of a private placement or public offering, loans or advances from officers or directors or others or convertible debentures.

 

We do not expect any changes or hiring of employees since contracts are given to consultants and sub-contractor specialists in specific fields of expertise. We do not expect to purchase or sell any plant or significant equipment. We intend to lease or rent any equipment that we will need in order to carry out our business plan development.

 

Presently, we have not generated any revenues to meet operating and capital expenses. We have incurred operating losses since inception, and this is likely to continue through fiscal 2018. Management projects that we will require a total of up to $750,000 to fund ongoing operating expenses and working capital requirements for the next twelve months.

 

Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on the annual financial statements for the year ended February 28, 2017, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our former independent auditors. Our issuance of additional equity securities could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

 

There are no assurances that we will be able to obtain further funds required for continued long term operations. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our obligations as they become due.

 

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Results of Operation for the Three Months Ended August 31, 2017 and 2016  

 

Operating Expense

The Company had operating expenses $230,385 for the three months ended August 31, 2017 compared to $204,057 for the three months ended August 31, 2016, an increase of $26,328. In the current year operating expense includes $22,500 of non-cash stock compensation compared to $54,510 in the prior period. The expenses can be subdivided into the following categories which have and will vary from quarter to quarter based on the level of corporate activity and capital-raising.

 

    For the three months ended
August 31,
    2017   2016
Development   $ 85,413     $ 91,773  
Sales and Marketing     54,113       60,760  
Professional Fees     58,374       21,475  
Other General & Administrative Expenses     32,485       30,049  
Total Operating Expenses   $ 230,385     $ 204,057  

 

Other Expense

There was total other expense of $328,909 for the three months ended August 31, 2017 compared to $7,670 for the three months ended August 31, 2016. In the current period we had interest expense of $76,475, including debt discount amortization and loss on derivative of $252,434. In the prior period we had interest expense of $7,670 which included debt discount amortization of $7,000. These expenses have increased with the addition of new convertible notes.

 

Results of Operation for the Six Months Ended August 31, 2017 and 2016  

 

Operating Expense

The Company had operating expenses $570,263 for the six months ended August 31, 2017 compared to $359,117 for the six months ended August 31, 2016. In the current year operating expense includes $172,400 of non-cash stock compensation compared to $85,760 in the prior period. The Company had operating expenses excluding stock based compensation for the for the six months ended August 31, 2017 of $397,863 compared to $273,357 for the six months ended August 31, 2016, an increase of $124,506 or 45.5%. Expenses have increased in conjunction with the increased activity of the company as it moves towards revenue generating operations. The expenses can be subdivided into the following categories which have and will vary from quarter to quarter based on the level of corporate activity and capital-raising.

 

    For the six months ended
August 31,
    2017   2016
Development   $ 165,390     $ 97,756  
Sales and Marketing     240,631       132,126  
Professional Fees     98,085       57,483  
Other General & Administrative Expenses     66,157       71,752  
Total Operating Expenses   $ 570,263     $ 359,117  

 

Other Expense

There was total other expense of $868,968 for the six months ended August 31, 2017 compared to $7,670 for the six months ended August 31, 2016. In the current period we had interest expense of $279,184, including debt discount amortization and loss on derivative of $589,784. In the prior period we had interest expense of $7,670 which included debt discount amortization of $7,000. These expenses have increased with the addition of new convertible notes.

 

Liquidity and Capital Resources

 

As of the end of the last quarter on August 31, 2017, we have yet to generate any revenues from operations.

 

Net Cash Used in Operating Activities

 

During the six-month period ended August 31, 2017, $206,827 of cash was used for operating activities as compared to $195,689 used in the six months ended August 31, 2016.

 

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Cash Flow from Investing Activities

 

There was no investing activity for the six months ended August 31, 2017 and 2016.

 

Cash Flow from Financing Activities

 

During the six-month periods ended August 31, 2017 and 2016, the Company had net cash of $193,650 and $180,683 respectively, in cash provided by financing activities.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

(a) Evaluation of Disclosure Controls and Procedures.

 

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were ineffective to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

 

(b) Changes in Internal Controls over Financial Reporting.

 

Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

 

The Company is not required by current SEC rules to include, and does not include, an auditor’s attestation report. The Company’s registered public accounting firm has not attested to Management’s reports on the Company’s internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of its business. Although the Company cannot accurately predict the amount of any liability that may ultimately arise with respect to any of these matters, it makes provision for potential liabilities when it deems them probable and reasonably estimable. These provisions are based on current information and legal advice and may be adjusted from time to time according to developments.

 

On July 12, 2017, the Company filed a lawsuit against Ya-Ping Chang for Breach of Contract, Fraud, and Civil Conspiracy to Defraud the Shareholders of VinCompass. On June 23, 2017, Ya-Ping Chang fraudulently obtained new EDGAR codes and falsely filed an 8-K, stating she was the majority shareholder of the Company claiming to be the new executive officer, and attempted to remove our Chairman, CEO and true majority shareholder, Peter Lachapelle, from all corporate offices. On July 14, 2017, the Company was heard on an emergency basis ex parte hearing in San Diego Superior Court and obtained a Restraining Order against Defendant Chang, restraining Defendant Chang from having any access to the Company. Defendant Chang’s counsel was present. The Company intends on pursuing any and all legal remedies available against Defendant Chang.

 

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ITEM 1A. RISK FACTORS

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

During the three months ended May 31, 2017, the Company issued 9,000,000 shares of common stock for services to third parties. The shares were issued at $0.0011 based on the closing price on the date of grant for total non-cash expense of $9,900.

 

During the three months ended May 31, 2017, the Company issued 91,173,404 shares of common stock for conversion of principal of $139,749 and accrued interest of $7,456.

 

During the three months ended August 31, 2017, the Company issued 75,000,000 shares of common stock for services to third parties. The shares were issued at $0.0003 based on the closing price on the date of grant for total non- cash expense of $22,500.

 

During the three months ended August 31, 2017, the Company issued 361,553,286 shares of common stock for conversion of principal of $66,117 and accrued interest of $4,890.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. OTHER INFORMATION

 

None.

 

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ITEM 5. EXHIBITS

 

Exhibit        
Number   Description of Exhibit    
31.01   Certification of Principal Executive Officer Pursuant to Rule 13a-14   Filed herewith.
31.02   Certification of Principal Financial Officer Pursuant to Rule 13a-14   Filed herewith.
32.01   CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act   Filed herewith.
32.02   CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act   Filed herewith.
101.INS*   XBRL Instance Document   Filed herewith.
101.SCH*   XBRL Taxonomy Extension Schema Document   Filed herewith.
101.CAL*   XBRL Taxonomy Extension Calculation Linkbase Document   Filed herewith.
101.LAB*   XBRL Taxonomy Extension Labels Linkbase Document   Filed herewith.
101.PRE*   XBRL Taxonomy Extension Presentation Linkbase Document   Filed herewith.
101.DEF*   XBRL Taxonomy Extension Definition Linkbase Document   Filed herewith.

 

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SIGNATURES

 

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  VINCOMPASS CORP.
   
Date: October 23, 2017 By: /s/ Peter Lachapelle
  Name: Peter Lachapelle
  Title: Chief Executive Officer and Director

 

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Date: October 23, 2017 By: /s/ Peter Lachapelle
  Name: Peter Lachapelle
  Title: Chief Executive Officer and Director

 

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