ITEM
1. FINANCIAL STATEMENT
BorrowMoney.com,
Inc.
Consolidated
Balance Sheets
(unaudited)
|
|
November
30, 2018
|
|
|
August
31, 2018
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
63,965
|
|
|
$
|
5,132
|
|
Prepaid
expenses
|
|
|
-
|
|
|
|
4,000
|
|
Total
current assets
|
|
|
63,965
|
|
|
|
9,132
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
63,965
|
|
|
$
|
9,132
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholder’s Deficit
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
|
$
|
12,318
|
|
|
$
|
2,599
|
|
Accrued
interest
|
|
|
32,544
|
|
|
|
27,105
|
|
Notes
payable-related party, current portion
|
|
|
389,522
|
|
|
|
-
|
|
Total
current liabilities
|
|
|
434,384
|
|
|
|
29,704
|
|
|
|
|
|
|
|
|
|
|
Long
term debt
|
|
|
|
|
|
|
|
|
Notes
payable-related party
|
|
|
-
|
|
|
|
330,220
|
|
Total
liabilities
|
|
|
434,384
|
|
|
|
359,924
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
deficit:
|
|
|
|
|
|
|
|
|
Preferred
stock 20,000,000 shares authorized $0.0001 par value none issued and outstanding at November 30, 2018 and August 31, 2018
|
|
|
-
|
|
|
|
-
|
|
Common
stock-100,000,000 shares authorized $0.0001 par value issued and outstanding common shares at November 30, 2018 and August
31, 2018 were 21,823,000
|
|
|
2,182
|
|
|
|
2,182
|
|
Additional
paid-in capital
|
|
|
237,818
|
|
|
|
237,818
|
|
Accumulated
deficit
|
|
|
(610,419
|
)
|
|
|
(590,792
|
)
|
Total
stockholders’ deficit
|
|
|
(370,419
|
)
|
|
|
(350,792
|
)
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders’ Deficit
|
|
$
|
63,965
|
|
|
$
|
9,132
|
|
See
notes to unaudited interim consolidated financial statements
BorrowMoney.com,
Inc.
Consolidated
Statements of Operations
(unaudited)
|
|
For
the Three Months Ended
|
|
|
For
the Three Months Ended
|
|
|
|
November
30, 2018
|
|
|
November
30, 2017
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
9,428
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Costs
related to services
|
|
|
1,609
|
|
|
|
1,981
|
|
General
and administrative
|
|
|
22,007
|
|
|
|
34,244
|
|
Total
operating expenses
|
|
|
23,616
|
|
|
|
36,225
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
|
|
(14,188
|
)
|
|
|
(36,225
|
)
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(5,439
|
)
|
|
|
(2,584
|
)
|
Total
other expenses
|
|
|
(5,439
|
)
|
|
|
(2,584
|
)
|
|
|
|
|
|
|
|
|
|
Net
loss before income taxes
|
|
|
(19,627
|
)
|
|
|
(38,809
|
)
|
Income
taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(19,627
|
)
|
|
$
|
(38,809
|
)
|
|
|
|
|
|
|
|
|
|
Basic
and diluted per common share amounts:
|
|
|
|
|
|
|
|
|
Basic
and diluted net loss
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding (basic and diluted)
|
|
|
21,823,000
|
|
|
|
22,073,000
|
|
See
notes to unaudited interim consolidated financial statements
BorrowMoney.com,
Inc.
Consolidated
Statements of Cash Flows
(unaudited)
|
|
For
the three months ended
|
|
|
For
the three months ended
|
|
|
|
November
30, 2018
|
|
|
November
30, 2017
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(19,627
|
)
|
|
$
|
(38,809
|
)
|
Changes
in net assets and liabilities
|
|
|
|
|
|
|
|
|
Prepaid
expenses
|
|
|
4,000
|
|
|
|
-
|
|
Accounts
payable and accrued expenses
|
|
|
9,719
|
|
|
|
5,000
|
|
Accrued
interest
|
|
|
5,439
|
|
|
|
2,584
|
|
Cash
used in operating activities:
|
|
|
(469
|
)
|
|
|
(31,225
|
)
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds
from related party loans
|
|
|
59,302
|
|
|
|
40,000
|
|
Cash
provided by financing activities
|
|
|
59,302
|
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
Change
in cash
|
|
|
58,833
|
|
|
|
8,775
|
|
Cash-
beginning of period
|
|
|
5,132
|
|
|
|
10,026
|
|
Cash-end
of period
|
|
$
|
63,965
|
|
|
$
|
18,801
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
|
$
|
-
|
|
|
$
|
-
|
|
Cash
paid for taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
See
notes to unaudited interim consolidated financial statements
BORROWMONEY.COM,
INC.
Notes
to the Consolidated Financial Statements
For
the Three Months Ended November 30, 2018 and 2017
(Unaudited)
NOTE
1 – ORGANIZATION AND NATURE OF BUSINESS
On
April 28, 2015, Horizon Group Holding, Inc., a Florida corporation, entered into a Share Exchange Agreement (the “Agreement”)
with BorrowMoney.com Inc., a New York Corporation (“BMNY”) pursuant to which BorrowMoney.com Inc., would become a
wholly-owned subsidiary of Horizon Group Holding, Inc. The share exchange was accounted for as a reverse acquisition with BorrowMoney.com
Inc., being treated as the acquiring company for accounting purposes. Pursuant to the agreement the Horizon Group Holding changed
its name to BorrowMoney.com, Inc. (BMFL).
In
connection with the Agreement, the Company acquired 100% of the issued shares of BMNY, Inc., in a share exchange where 10,000
shares of the Company were issued to the shareholders of BMNY in exchange for each share of BMNY for a total issuance of 20,000,000
common shares.
BMNY
a wholly-owned subsidiary of the Company as a result of the Agreement was incorporated under the laws of the state of New York
on August 9, 2010.
BorrowMoney.com,
Inc.’s provides an internet-based platform that can match mortgage and loan providers with prospective borrowers. The Company
offer to borrowers “screened lenders” and ensure the lenders trustworthiness and legitimacy. The Company provides
institutional lenders with innovative digital solutions by offering fintech technologically advanced gathered leads through an
exclusive proprietary platform.
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of presentation
The
accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles
(“U.S. GAAP”).
The
interim unaudited consolidated financial statements as of November 30, 2018, and for the three months then ended, have been prepared
in accordance with accounting principles generally accepted in the United States for interim financial information on the same
basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal
recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows
for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a
full year or for any future period. They do not include all of the information and footnotes required by GAAP for complete financial
statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements
and notes filed with the SEC for the year ended August 31, 2018.
Going
Concern
The
accompanying unaudited interim consolidated 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 earned limited revenue since inception and lacks any significant operational history. These matters,
among others, raise substantial doubt about our ability to continue as a going concern.
While
the Company is attempting to generate sufficient revenues, its cash position may not be significant enough to support daily operations.
Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently
being taken to further implement its business plan and generate 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 revenues and in its ability to raise
additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent
upon its ability to further implement its business plan and generate sufficient revenues.
Revenue
Recognition
In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09,
Revenue from Contracts
with Customers (Topic 606)
(ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August
2015, the FASB issued ASU No. 2015- 14,
Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date
,
which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard
as of the original effective date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08,
Revenue from Contracts
with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)
(ASU 2016-08) which
clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an
entity in determining whether it controls a specified good or service before it is transferred to the customers. The new standard
further requires new disclosures about contracts with customers, including the significant judgments the registrant has made when
applying the guidance. We adopted the new standard effective September 1, 2018 using the modified retrospective method.
Revenues
are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration
the Company expects to be entitled to in exchange for transferring those goods or services.
Revenue
is recognized based on the following five step model:
|
●
|
Identification
of the contract with a customer
|
|
|
|
|
●
|
Identification
of the performance obligations in the contract
|
|
|
|
|
●
|
Determination
of the transaction price
|
|
|
|
|
●
|
Allocation
of the transaction price to the performance obligations in the contract
|
|
|
|
|
●
|
Recognition
of revenue when, or as, the Company satisfies a performance obligation
|
In
October 2018 the Company entered into an agreement with Lending Club. The Company will earn a referral fee of $40 for each lead
provided to Lending Club. Revenue is generally recognized at the time the “lead” information is turned over to our
customer. All of our revenue is currently related to lead generation and as such no disclosure disaggregation of revenue is currently
needed.
During
the three months ended November 30, 2018, the Company had one major customer that accounted for approximately 99% of total revenue.
Costs
to Obtain Customer Contracts
Sales
commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs
are capitalized and amortized on a straight-line basis over the anticipated period of benefit. We determined the period of benefit
by taking into consideration the length of our customer contracts, our technology lifecycle, and other factors. Amortization expense
is recorded in sales and marketing expense within our statement of operations. Historically we have not incurred incremental cost
to acquire customer contracts.
NOTE
3 - RELATED PARTY TRANSACTIONS
Related
party debt consists of the following as of November 30, 2018 and August 31, 2018, respectively:
|
|
Year
Ended
|
|
|
Year
Ended
|
|
|
|
November
30, 2018
|
|
|
August
31, 2018
|
|
1
note payable to a related party, unsecured, bearing interest at 4% Balance at beginning of year
|
|
$
|
330,220
|
|
|
$
|
240,220
|
|
Advances
received
|
|
|
59,302
|
|
|
|
90,000
|
|
Balance at
end of period
|
|
|
389,522
|
|
|
|
330,220
|
|
Less
current portion
|
|
|
389,522
|
|
|
|
-
|
|
Due
after one year
|
|
$
|
-
|
|
|
$
|
330,220
|
|
In
connection with the note, the Company has an accrued interest obligation as of November 30, 2018 and August 31, 2018 of $32,544
and $27,105 respectively. During the quarter ended May 31, 2018 the due date of the note was extended to September 1, 2019 and
continues to accrue interest at 4%.
The
Company utilizes approximately 1,800 square feet of office space in Brooklyn, NY. The space is owned by the President and is provided
without charge to the Company. In addition the company utilizes a small office space in Fort Lauderdale, Florida which is also
provided without charge to the Company by the President.
ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The
following information specifies certain forward-looking statements of management of the Company. Forward-looking statements are
statements that estimate the happening of future events are not based on historical fact. Forward-looking statements may be identified
by the use of forward-looking terminology such as, “may,” “shall,” “could,” “expect,”
“estimate,” “anticipate,” “predict,” “probable,” “possible,” “should,”
“continue,” or similar terms, variations of those terms or the negative of those terms. The forward-looking statements
specified in the following information have been complied by our management and considered by management to be reasonable. Our
future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from
those forward-looking statements.
The
assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of
future events and are subject to uncertainty as to possible changes in economic, legislative, industry and other circumstances.
As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions
from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the
outcome may vary substantially from anticipated or projected results, and accordingly, no opinion is expressed on the achievability
of these forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements
specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.
Overview
BorrowMoney.com,
Inc. was incorporated in the state of Florida on January 27, 2000, originally known as Sports.com, Inc. Since its inception and
up until May 4, 2015, the Company has undergone several name changes, the last being BorrowMoney.com, Inc. On May 4, 2015, the
Company became BorrowMoney.com, Inc. Simultaneously, it completed a share exchange with all of the shareholders of BorrowMoney.com,
Inc., a New York corporation where 100% of the issued and outstanding shares of the New York Corporation were exchanged for shares
in the Florida Corporation which resulted in Borrowmoney.com, Inc., the New York Corporation becoming a wholly owned subsidiary
of the Florida Corporation. Unless the context otherwise requires, all references to the “
Company
,” “
we
,”
“
our
” “
BorrowMoney
” or “
us
” and other similar terms collectively means
BorrowMoney.com, Inc.
BorrowMoney.com
operates what we believe to be the leading online loan marketplace for consumers seeking loans and other credit-based offerings.
Our online marketplace provides consumers with access to product offerings from our Network Lenders, including mortgage loans,
home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student
loans, small business loans and other related offerings. In addition, we offer tools and resources, including free credit scores,
that facilitate comparison shopping for these loans, deposits and other credit-based offerings. We seek to match consumers with
multiple lenders, who can provide them with competing quotes for the product they are seeking.
We
also serve as a valued partner to lenders seeking an efficient, scalable and flexible source of customer acquisition with directly
measurable benefits, by matching the consumer inquiries we generate with these lenders.
Our
My BorrowMoney.com platform offers a personalized loan comparison-shopping experience by providing free credit scores and credit
score analysis. This platform enables us to observe consumers’ credit profiles and then identify and alert them to loan
and other credit-based opportunities on our marketplace that may be more favorable than the loans they may have at a given point
in time. This is designed to provide consumers with measurable savings opportunities over their lifetimes.
In
addition to operating our core mortgage inquiry and Leads business, we are focused on growing our non-mortgage lending businesses
and developing new product offerings and enhancements to improve the experiences that consumers and lenders have as they interact
with us. By expanding our portfolio of loans and other product offerings, we are growing and diversifying our business and sources
of revenue. We intend to capitalize on our expertise in performance marketing, product development and technology, and to leverage
the widespread recognition of the BorrowMoney.com brand to effect this strategy.
We
believe the consumer and small business financial services industry is in the early stages of a fundamental shift to online product
offerings, similar to the shift that started in retail and travel many years ago and is now well established. We believe that
like retail and travel, as consumers continue to move towards online shopping and transactions for financial services, suppliers
will increasingly shift their product offerings and advertising budgets toward the online channel. We believe the strength of
our brands and of our lender network place us in a strong position to continue to benefit from this market shift.
BorrowMoney.com,
Inc.’s main objective is to provide a service for the internet mortgage and loan provider business. BorrowMoney.com, Inc.’s
business model envisions providing current, qualified leads to local lending institutions who are currently members of the National
Mortgage Listing Service. These leads will represent qualified borrowers in targeted zip code locations where the lender conducts
business. Our internet platform offers a portal geared toward providing services to lending institutions who would be our customers.
The key function of our platform is to provide qualified leads to local mortgage and lending professionals. The Company monetizes
customer inquiries through the use of various advertising methods. The Company sells advertising space on its website and creates
revenue through the sale of advertisement space, membership fees and lead packages.
We
are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our
Business Startups Act of 2012, or the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various
reporting requirements that are applicable to other public companies that are not “emerging growth companies” including,
but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports
and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and
stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive
as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.
In
addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards
would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period until
we are no longer an “emerging growth company.”
We
will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary
of the completion of an offering completed on May, 2017, (b) in which we have total annual gross revenue of at least $1.0 billion,
or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by
non-affiliates exceeds $700 million as of the prior June 30
th
, and (2) the date on which we have issued more than $1.0
billion in non-convertible debt during the prior three-year period.
Limited
Operating History
We
have not previously demonstrated that we will be able to expand our business through an increased investment in our product line
and/or marketing efforts. We cannot guarantee that the expansion efforts described in this report will be successful. Our business
is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our products
and/or sales methods.
Plan
of Operations
During
the next 12 months, we expect to take the following steps in connection with the further growth of our business in the implementation
of a plan of operations:
We
are presently operational with respect to our technology and are ready to obtain agreements with lenders for geographic areas
and ZIP Codes. We expect to spend the next 12 months obtaining agreements with lenders, maintaining our Internet-based platform,
and begin generating revenues for our marketplace services. Over the next 12 months, our growth is designed to attract a modest
level of business aimed at reaching a breakeven point and create consumer and lender awareness of the Company as a reliable and
credible Internet-based loan marketplace. The budget for the next 12 months is estimated to be $93,990, which is being provided
for by our founding principal and President, Aldo Piscitello. A breakdown of the estimated cost for our next 12 months of operation
are as follows:
ACCOUNTING
SERVICE
|
|
$
|
23,000
|
|
AMAZON
(AWS) WEB HOSTING SERVICE, AND MAINTENANCE
|
|
|
7,000
|
|
4
EMPLOYEES BASIC EXPENSE COMMISSION BASE ON 1099
|
|
|
20,000
|
|
AOL
BACK UP EMAIL SERVICE
|
|
|
120
|
|
E-WIZ
SOLUTION, INC, IT UPDATE MAINTENANCE AND SERVICE
|
|
|
10,000
|
|
GODADDY,
DOMAIN NAMES HOSTING. SERVICE. AND MAINTENANCE
|
|
|
2,500
|
|
GOOGLE
EMAIL SERVICE
|
|
|
550
|
|
LEGAL
FEES
|
|
|
2,000
|
|
LIVE
CHAT INC , WEB SITE SERVICE
|
|
|
250
|
|
MARKETING
MATERIAL
|
|
|
5,000
|
|
NETFLIX
.COM, DOWNLOAD SERVICE
|
|
|
100
|
|
OFFICE
SUPPLY
|
|
|
1,000
|
|
PERSOLVENT
INC, CREDIT CARDS MAINTENANCE SERVICE
|
|
|
220
|
|
PUBLIC
STORAGE, RENT FOR COMPUTERS AND OFFICE SUPPLY
|
|
|
1,100
|
|
QUICK
BOOKS ONLINE ACCOUNTING SERVICE,
|
|
|
550
|
|
OFFICE
SPACE RENT
|
|
|
15,000
|
|
TELEPHONE
SERVICE,
|
|
|
3,800
|
|
THE
FINANCIAL SERVICE, RATES UPDATE SERVICE
|
|
|
600
|
|
VSTOCK
TRANSFER LLC,
|
|
|
1,200
|
|
TOTAL
|
|
$
|
93,
990
|
|
Revenues
are expected to be minimal as the volume of lender agreements during this initial stage of operation is expected to be low. We
expect to operate at a loss during our initial growth/operating period. No salary is planned to be paid to the President, Directors,
or other executive officers until the Company has completed 12 months of operations. Only our contract part time employees will
be compensated.
Contingent
upon the successful completion of our next 12 months of operation, we plan to aggressively expand our operation and business.
Our expansion would be accompanied by an increase in the number of employees to obtain lender agreements for ever-expanding geographic
areas.
Sources
of Revenue
BorrowMoney.com
will generally be compensated from fees paid by its members and fees paid for supplying “leads” to participating lenders
and other financial institutions. However, as of the current date the Company has not generated any revenues but is in the final
development stage in anticipation of launching its web site gradually in selected markets.
Channels
of Distribution; Marketing Costs
BorrowMoney.com
markets and offers services directly to customers through its branded website allowing customers to transact directly with BorrowMoney.com
in a convenient manner. The Company has made, and expects to continue to make, substantial investments in online and offline advertising
to build its brands and drive traffic to its businesses. The cost of acquiring new customers through online and offline third-party
distribution channels has increased, particularly in the case of online channels as internet commerce continues to grow and competition
in the housing market increases. BorrowMoney.com expects sales and marketing expense as a percentage of revenue to continue to
increase.
Results
of Operations
Three
Months ended November 30, 2018 as compared to November 30, 2018
The
Company had $9,428 for the three-month periods ended November 30, 2018 and no revenue in 2017. We consider web service support
costs provided by third parties as costs related to revenue. Such costs were $1,609 for the three-month period ended November
30, 2018 compared to $1,981 for the three months ended November 30, 2017. Due to the fixed nature of these ongoing costs the company
expects to continue to incur the costs regardless of recognizing revenue.
Operating
expenses for the three month period ended November 30, 2018 were $23,616 compared to $36,225 for the three-month period ending
November 30, 2017.
Financial
Position, Liquidity and Capital Resource
As
of November 30, 2018, all cash loaned by the Company to pay its operating and development expenses has been furnished by its founder
and President, Aldo Piscitello. With this cash infusion, the Company has incurred no outstanding long term obligations, other
than the debt owed to Mr. Piscitello. Additionally, the Company anticipates offering shares of the company through a private offering
of its securities to supplement its capital requirements. For the three months ended November 30, 2018 the company used $469 in
operating activities and the Company was funded by related party loans of $59,302. The cash balance at November 30, 2018 was $63,965.
All advances by Mr. Piscitello accrue interest at 4% and are due September 1, 2019. At November 30, 2018, we have a working capital
deficiency of $370,419. Interest expense of $5,439 and $2,584 for the three- month period ended November 30, 2018 and 2017 was
the result of accruals related to Mr. Piscitello’s advances.
Critical
Accounting Policies
Our
critical accounting policies, including the assumptions and judgments underlying them, are disclosed in the Notes to the Consolidated
Financial Statements. We have consistently applied these policies in all material respects. We do not believe that our operations
to date have involved uncertainty of accounting treatment, subjective judgment, or estimates, to any significant degree.
Going
Concern
The
accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of business. Because we have suffered recurring losses from
operations and negative operating cash flows, there is substantial doubt about the Company’s ability to continue as a going
concern. The ability to continue as a going concern is dependent on Management’s plans, which include potential asset acquisitions,
mergers, or business combinations with other entities, further implementation of its business plan and continuing to raise funds
through debt or equity raises. The consolidated financial statements do not include any adjustments that might be necessary if
the Company is unable to continue as a going concern.