ITEM
1. FINANCIAL STATEMENT
BorrowMoney.com,
Inc.
Consolidated
Balance Sheets
(unaudited)
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|
November 30, 2020
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|
|
November 30, 2019
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|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
3,919
|
|
|
$
|
1,928
|
|
|
|
|
|
|
|
|
|
|
Total current assets
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|
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3,919
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|
|
|
1,928
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|
|
|
|
|
|
|
|
|
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Total Assets
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|
$
|
3,919
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|
|
$
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1,928
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Liabilities and Stockholder’s Deficit
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Current liabilities:
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Accounts payable and accrued expenses
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$
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10,275
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|
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$
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2,599
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Loan Payable
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10,566
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|
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-
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Notes payable - Related Parties
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586,515
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|
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485,094
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Total current liabilities
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434,384
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29,704
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Long term debt
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-
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-
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Total liabilities
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620,994
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493,823
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Stockholders’ deficit:
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Preferred stock 20,000,000 shares authorized $0.0001 par value none issued and outstanding at
November 30, 2020 and November 30, 2019
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|
-
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|
-
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|
Common stock-100,000,000 shares authorized $0.0001 par
value issued and outstanding common shares at November 30, 2020 and November 30, 2019 were 21,823,000
|
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2,182
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2,182
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Additional paid-in capital
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297,767
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297,767
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Subscription receivable
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1,000
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9,000
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Accumulated deficit
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(918,025
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)
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(782,846
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)
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Total stockholders’ deficit
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(617,075
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)
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(491,896
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)
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Total Liabilities and Stockholders’ Deficit
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|
$
|
3,919
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|
|
$
|
1,928
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|
See
notes to unaudited interim consolidated financial statements
BorrowMoney.com,
Inc.
Consolidated
Statements of Operations
(unaudited)
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For the Three Months Ended
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For the Three Months Ended
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November 30, 2020
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November 30, 2019
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Revenue
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$
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5,000
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$
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-
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Operating expenses:
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General and administrative
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20,375
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35,978
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Total operating expenses
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20,375
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35,978
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Income (loss) from operations
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(15,375
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)
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(35,978
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)
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Other expense:
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Interest expense
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11,500
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|
|
|
4,207
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Total other expenses
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11,500
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|
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4,207
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Net loss before income taxes
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(31,874
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)
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(40,185
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)
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Income taxes
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|
-
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-
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Net loss
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|
$
|
(31,874
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)
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|
$
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(40,185
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)
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Basic and diluted per common share amounts:
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Basic and diluted net loss
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$
|
(0.00
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)
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$
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(0.00
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)
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|
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Weighted average common shares outstanding (basic and diluted)
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109,175,000
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|
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22,073,000
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|
See
notes to unaudited interim consolidated financial statements
BorrowMoney.com,
Inc.
Consolidated
Statements of Cash Flows
(unaudited)
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For the three
months ended
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For the three
months ended
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November 30, 2020
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November 30, 2019
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Cash flows from operating activities:
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|
|
|
|
|
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Net Loss
|
|
$
|
(31,874
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)
|
|
$
|
(40,185
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)
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Changes in net assets and liabilities
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|
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|
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-
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|
Accounts payable and accrued expenses
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|
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(536
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)
|
|
|
495
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|
Accrued interest
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|
|
11,499
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|
|
|
4,207
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|
Cash used in operating activities:
|
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(20,911
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)
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|
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(35,482
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)
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Cash flows from financing activities:
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Due to Harthorne Capital
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10,566
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-
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Subscription receivable-Paid in Capital
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5,000
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|
1,000
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Net proceeds from related party loans
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1,472
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28,763
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Cash provided by financing activities
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17,038
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|
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29,763
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|
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|
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Change in cash
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(3,873
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)
|
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|
5,720
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|
Cash- beginning of period
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|
7,792
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|
|
|
7,647
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|
Cash-end of period
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$
|
3,919
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|
|
$
|
1,928
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|
|
|
|
|
|
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Cash paid for interest
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|
$
|
-
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|
|
$
|
-
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|
Cash paid for taxes
|
|
$
|
-
|
|
|
$
|
-
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|
See
notes to unaudited interim consolidated financial statements
BORROWMONEY.COM,
INC.
Notes
to the Consolidated Financial Statements
For
the Three Months Ended November 30, 2020 and 2019
(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.
BorrowMoney.com,
Inc.’s provides an internet-based platform that can match mortgage and loan providers with prospective borrowers.
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, 2020, 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 financial statements
and notes filed with the SEC for the year ended August 31, 2020.
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:
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Identification
of the contract with a customer
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●
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Identification
of the performance obligations in the contract
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●
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Determination
of the transaction price
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●
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Allocation
of the transaction price to the performance obligations in the contract
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●
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Recognition
of revenue when, or as, the Company satisfies a performance obligation
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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.
By
expanding our portfolio of loans and other product offerings, we plan to grow and diversify 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 30th, 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.
Management
Changes
On
October 14, 2020, the Board of Directors of BorrowMoney.com, Inc. (the “Company”) accepted the resignation of Nancy
Alario and Frank Micali as Directors of BorrowMoney.com, Inc. Alario and Micali decision to resign was not the result of any disagreement
with the Company. The Company thanks Mr. Micali and Ms. Alario for their time of service and contributions.
Effective
October 13, 2020, the Board of Directors of the Company appointed Houston Reid, age 32, as a director of the Company until the
next regular meeting of shareholders or until her successor is elected and qualified.
Mr.
Reid is President, and Chief Executive Officer of Monark Capital Group, an alternative lending firm, with over 50 million plus
funded across all 50 states and Canada. Since founding the company in 2018, he has focused on leveraging Monark’s unique
network to serve its customers and organizations in expanding profits through alternative financing. Through Houston’s leadership,
the company has built a strong market share by leveraging technology and sound strategies to serve its customer base.
An
8-K was filed on October 14, 2020 reflecting these changes.
Plan
of Operations
Our
plans for the next 12 months are:
We
have completed out technology platform and in the process of relaunching the website. We are now entering our operational phase
which includes contracting with mortgage and personal loan lenders for geographic areas using ZIP Codes. In addition to expanding
our network of lenders over the next 12 months, we intend to continue optimizing and enhancing our Internet-based platform to
focus on lead generation and generating additional revenues for our marketplace services. Our mission is to be the premier loan
lead generation company. The budget for the next 12 months is estimated to be $500.0k which is expected to come from friends,
family, and officers. A breakdown of the estimated cost for our next 12 months of operation are as follows:
|
|
|
(000’s)
|
|
Legal and Professional Fees
|
|
$
|
50.0
|
|
Web Hosting Service, and Maintenance
|
|
|
8.0
|
|
Subcontracting Services
|
|
|
280.0
|
|
Office Expenses
|
|
|
5.0
|
|
IT Maintenance and Service
|
|
|
10.0
|
|
Domain Names Hosting. Service. and Maintenance
|
|
|
2.5
|
|
Website Development and Related Service
|
|
|
15.0
|
|
Licenses and Permits
|
|
|
3.5
|
|
Marketing and Advertising
|
|
|
50.0
|
|
Bank Charges and Cred Card Processing Fees
|
|
|
3.0
|
|
Rent
|
|
|
25.0
|
|
Dues and Subscriptions
|
|
|
7.5
|
|
Computer Expenses
|
|
|
5.0
|
|
Transfer and Recording Costs
|
|
|
10.0
|
|
Office Space Rent
|
|
|
22.0
|
|
Telephone Service
|
|
|
3.5
|
|
Total
|
|
$
|
500.0
|
|
Revenues
are expected to be minimal as the volume of lender agreements during this stage of operation is expected to increase at a gradual
pace throughout the year. We expect to operate at a loss during our initial growth/operating period. President, Directors, or
other executive officers will be compensated with sweat equity options until such time that the company has positive cash flows.
Contingent
upon the successful completion of our next 12 months of operation, we plan to aggressively expand our operation and business from
existing revenues. Our expansion would be accompanied by an increase in the number of personnel to obtain lender agreements for
ever-expanding geographic areas.
Channels
of Distribution; Marketing Costs
BorrowMoney.com
markets and offers services directly to customers through its branded website allowing customers to be pre-qualified in a one
stop platform and have access to all the major lenders and loan programs. The Company has made, and expects to continue to make,
substantial investments in its online technology platform and marketing strategy to build its brand awareness in the marketplace
that will drive traffic and generate leads. The need for online mortgages and personal money loan platform is driven not only
by the millennium generation that are moving away from traditional brick and mortar banks but also from the new lifestyle changes
caused by the Covid-19 pandemic. BorrowMoney.com expects to take advantage of this opportunity to capture a large portion of this
“new” marketplace demand and increase its revenue exponentially.
Results
of Operations
Three
Months ended November 30, 2020 as compared to November 30, 2019
The
Company had $5,000 for the three-month periods ended November 30, 2020 and no revenue the same prior period ended November 30,
2019. Operating expenses for the three-month period ended November 30, 2020 were $25,375 compared to $35,978 for the prior three-month
period ending November 30, 2019.
The
company is in the process of rebranding and redeveloping its online presence and as such will continue to incur development expenses
in the next 12 months.
Financial
Position, Liquidity and Capital Resource
As
of November 30, 2020, all cash loaned by the Company to pay its operating and development expenses has been furnished by its founder
and President, Aldo Piscitello. The company also has borrowed $10,566 from Harthorne Capital to reach its objectives. 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, 2020 the company used $20,911 in operating activities and the Company was
funded by net related party loans of $1,472.10, $10,566.00 from a Corporate Lender and 5,000 of subscriptions. The cash balance
on November 30, 2020 was $3,919. All advances by Mr. Piscitello accrue interest at 8%. Interest expense of $11,500 and $4,207
for the three- month period ended November 30, 2020 and 2019 was the result of accruals related to the shareholder’s notes.
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.