| Issuer CIK | 0001518380 |
| Issuer CCC | XXXXXXXX |
| DOS File Number | |
| Offering File Number | |
| Is this a LIVE or TEST Filing? | ☒ LIVE ☐ TEST |
| Would you like a Return Copy? | ☐ |
| Notify via Filing Website only? | ☐ |
| Since Last Filing? | ☐ |
| Name | |
| Phone | |
| E-Mail Address |
| Exact name of issuer as specified in the issuer's charter | BUSCAR COMPANY |
| Jurisdiction of Incorporation / Organization |
NEVADA
|
| Year of Incorporation | 2010 |
| CIK | 0001518380 |
| Primary Standard Industrial Classification Code | SERVICES-RACING, INCLUDING TRACK OPERATION |
| I.R.S. Employer Identification Number | 68-0681435 |
| Total number of full-time employees | 1 |
| Total number of part-time employees | 0 |
| Address 1 | 1624 Market St #202-90862 |
| Address 2 | |
| City | Denver |
| State/Country |
COLORADO
|
| Mailing Zip/ Postal Code | 80202 |
| Phone | 661-418-7842 |
| Name | ANASTASIA SHISHOVA |
| Address 1 | |
| Address 2 | |
| City | |
| State/Country | |
| Mailing Zip/ Postal Code | |
| Phone |
| Industry Group (select one) | ☐ Banking ☐ Insurance ☒ Other |
| Cash and Cash Equivalents |
$
489196.00 |
| Investment Securities |
$
0.00 |
| Total Investments |
$
|
| Accounts and Notes Receivable |
$
0.00 |
| Loans |
$
|
| Property, Plant and Equipment (PP&E): |
$
504261.00 |
| Property and Equipment |
$
|
| Total Assets |
$
993457.00 |
| Accounts Payable and Accrued Liabilities |
$
44775.00 |
| Policy Liabilities and Accruals |
$
|
| Deposits |
$
|
| Long Term Debt |
$
177270.00 |
| Total Liabilities |
$
222045.00 |
| Total Stockholders' Equity |
$
771412.00 |
| Total Liabilities and Equity |
$
993457.00 |
| Total Revenues |
$
0.00 |
| Total Interest Income |
$
|
| Costs and Expenses Applicable to Revenues |
$
626772.00 |
| Total Interest Expenses |
$
|
| Depreciation and Amortization |
$
0.00 |
| Net Income |
$
-626772.00 |
| Earnings Per Share - Basic |
$
-0.02 |
| Earnings Per Share - Diluted |
$
0.00 |
| Name of Auditor (if any) | Benjamin & Young, LLP |
| Name of Class (if any) Common Equity | Common Stock |
| Common Equity Units Outstanding | 18681321 |
| Common Equity CUSIP (if any): | 12316W 20 |
| Common Equity Units Name of Trading Center or Quotation Medium (if any) | OTC |
| Preferred Equity Name of Class (if any) | Series A preferred stock |
| Preferred Equity Units Outstanding | 8000000 |
| Preferred Equity CUSIP (if any) | None |
| Preferred Equity Name of Trading Center or Quotation Medium (if any) | None |
| Preferred Equity Name of Class (if any) | Series B preferred stock |
| Preferred Equity Units Outstanding | 9965000 |
| Preferred Equity CUSIP (if any) | None |
| Preferred Equity Name of Trading Center or Quotation Medium (if any) | None |
| Debt Securities Name of Class (if any) | None |
| Debt Securities Units Outstanding | 0 |
| Debt Securities CUSIP (if any): | |
| Debt Securities Name of Trading Center or Quotation Medium (if any) |
Check this box to certify that all of the following statements are true for the issuer(s)
☒
Check this box to certify that, as of the time of this filing, each person described in Rule 262 of Regulation A is either not disqualified under that rule or is disqualified but has received a waiver of such disqualification.
☒
Check this box if "bad actor" disclosure under Rule 262(d) is provided in Part II of the offering statement.
☐
| Check the appropriate box to indicate whether you are conducting a Tier 1 or Tier 2 offering | ☐ Tier1 ☒ Tier2 |
| Check the appropriate box to indicate whether the financial statements have been audited | ☐ Unaudited ☒ Audited |
| Types of Securities Offered in this Offering Statement (select all that apply) |
| ☒Equity (common or preferred stock) |
| Does the issuer intend to offer the securities on a delayed or continuous basis pursuant to Rule 251(d)(3)? | ☒ Yes ☐ No |
| Does the issuer intend this offering to last more than one year? | ☐ Yes ☒ No |
| Does the issuer intend to price this offering after qualification pursuant to Rule 253(b)? | ☐ Yes ☒ No |
| Will the issuer be conducting a best efforts offering? | ☒ Yes ☐ No |
| Has the issuer used solicitation of interest communications in connection with the proposed offering? | ☐ Yes ☒ No |
| Does the proposed offering involve the resale of securities by affiliates of the issuer? | ☐ Yes ☒ No |
| Number of securities offered | 4000000 |
| Number of securities of that class outstanding | 18681321 |
| Price per security |
$
1.0000 |
| The portion of the aggregate offering price attributable to securities being offered on behalf of the issuer |
$
2000000.00 |
| The portion of the aggregate offering price attributable to securities being offered on behalf of selling securityholders |
$
0.00 |
| The portion of the aggregate offering price attributable to all the securities of the issuer sold pursuant to a qualified offering statement within the 12 months before the qualification of this offering statement |
$
0.00 |
| The estimated portion of aggregate sales attributable to securities that may be sold pursuant to any other qualified offering statement concurrently with securities being sold under this offering statement |
$
0.00 |
| Total (the sum of the aggregate offering price and aggregate sales in the four preceding paragraphs) |
$
2000000.00 |
| Underwriters - Name of Service Provider | Underwriters - Fees |
$
0.00 | |
| Sales Commissions - Name of Service Provider | Sales Commissions - Fee |
$
0.00 | |
| Finders' Fees - Name of Service Provider | Finders' Fees - Fees |
$
0.00 | |
| Audit - Name of Service Provider | Benjamin & Young, LLP | Audit - Fees |
$
5000.00 |
| Legal - Name of Service Provider | Nathaniel Reinking | Legal - Fees |
$
2500.00 |
| Promoters - Name of Service Provider | Promoters - Fees |
$
0.00 | |
| Blue Sky Compliance - Name of Service Provider | Blue Sky Compliance - Fees |
$
0.00 |
| CRD Number of any broker or dealer listed: | |
| Estimated net proceeds to the issuer |
$
1992500.00 |
| Clarification of responses (if necessary) |
| Selected States and Jurisdictions |
ALASKA
ALABAMA
ARKANSAS
ARIZONA
CALIFORNIA
COLORADO
CONNECTICUT
DISTRICT OF COLUMBIA
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
IDAHO
ILLINOIS
INDIANA
KANSAS
KENTUCKY
LOUISIANA
MASSACHUSETTS
MARYLAND
MAINE
MICHIGAN
MINNESOTA
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NORTH DAKOTA
NEBRASKA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NEVADA
NEW YORK
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTA
TENNESSEE
TEXAS
UTAH
VIRGINIA
VERMONT
WASHINGTON
WISCONSIN
WEST VIRGINIA
WYOMING
ALBERTA, CANADA
BRITISH COLUMBIA, CANADA
MANITOBA, CANADA
NEW BRUNSWICK, CANADA
NEWFOUNDLAND, CANADA
NOVA SCOTIA, CANADA
ONTARIO, CANADA
PRINCE EDWARD ISLAND, CANADA
QUEBEC, CANADA
SASKATCHEWAN, CANADA
YUKON, CANADA
CANADA (FEDERAL LEVEL)
|
| None | ☐ |
| Same as the jurisdictions in which the issuer intends to offer the securities | ☒ |
| Selected States and Jurisdictions |
ALASKA
ALABAMA
ARKANSAS
ARIZONA
CALIFORNIA
COLORADO
CONNECTICUT
DISTRICT OF COLUMBIA
DELAWARE
FLORIDA
GEORGIA
HAWAII
IOWA
IDAHO
ILLINOIS
INDIANA
KANSAS
KENTUCKY
LOUISIANA
MASSACHUSETTS
MARYLAND
MAINE
MICHIGAN
MINNESOTA
MISSOURI
MISSISSIPPI
MONTANA
NORTH CAROLINA
NORTH DAKOTA
NEBRASKA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NEVADA
NEW YORK
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTA
TENNESSEE
TEXAS
UTAH
VIRGINIA
VERMONT
WASHINGTON
WISCONSIN
WEST VIRGINIA
WYOMING
ALBERTA, CANADA
BRITISH COLUMBIA, CANADA
MANITOBA, CANADA
NEW BRUNSWICK, CANADA
NEWFOUNDLAND, CANADA
NOVA SCOTIA, CANADA
ONTARIO, CANADA
PRINCE EDWARD ISLAND, CANADA
QUEBEC, CANADA
SASKATCHEWAN, CANADA
YUKON, CANADA
CANADA (FEDERAL LEVEL)
|
None ☐
As to any unregistered securities issued by the issuer of any of its predecessors or affiliated issuers within one year before the filing of this Form 1-A, state:
| (a)Name of such issuer | Buscar Co |
| (b)(1) Title of securities issued | Common Stock |
| (2) Total Amount of such securities issued | 100000 |
| (3) Amount of such securities sold by or for the account of any person who at the time was a director, officer, promoter or principal securityholder of the issuer of such securities, or was an underwriter of any securities of such issuer. | 0 |
| (c)(1) Aggregate consideration for which the securities were issued and basis for computing the amount thereof. | Price determined by Board of Directors |
| (2) Aggregate consideration for which the securities listed in (b)(3) of this item (if any) were issued and the basis for computing the amount thereof (if different from the basis described in (c)(1)). |
| (e) Indicate the section of the Securities Act or Commission rule or regulation relied upon for exemption from the registration requirements of such Act and state briefly the facts relied upon for such exemption | Exempt from registration under Rule 4(a)(2) of the Securities Act. |
|
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 1-A
TIER II OFFERING
OFFERING STATEMENT UNDER THE SECURITIES ACT OF 1933 CURRENT REPORT
|
BUSCAR COMPANY |
|
(Exact name of registrant as specified in its charter) |
|
Nevada |
|
7948 |
|
68-0681435 |
|
(State or other jurisdiction |
|
(Primary Standard Industrial |
|
(IRS Employer |
|
of incorporation or organization) |
|
Classification Code Number) |
|
Id. No.) |
|
1624 Market St Suite 202-90862 Denver, CO 80202 |
|
(Address of principal executive offices) (zip code) |
|
(661) 418-7842 |
|
(Registrant’s telephone number, including area code) |
THIS OFFERING STATEMENT SHALL ONLY BE QUALIFIED UPON ORDER OF THE COMMISSION, UNLESS A SUBSEQUENT AMENDMENT IS FILED INDICATING THE INTENTION TO BECOME QUALIFIED BY OPERATION OF THE TERMS OF REGULATION A.
PART I - NOTIFICATION
Part I should be read in conjunction with the attached XML Document for Items 1-6
PART I - END
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PRELIMINARY OFFERING CIRCULAR DATED FEBRUARY 22, 2018
An offering statement pursuant to Regulation A relating to these securities has been filed with the U.S. Securities and Exchange Commission, which we refer to as the Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the offering statement in which such Final Offering Circular was filed may be obtained.
BUSCAR COMPANY
2,000,000 SHARES OF COMMON STOCK
$0.0001 PAR VALUE PER SHARE
In this public offering we, “BUSCAR COMPANY.” are offering 2,000,000 shares of our common stock. The offering is being made on a self-underwritten, “best efforts” basis notwithstanding the resale shares may be sold to or through underwriters or dealers, directly to purchasers or through agents designated from time to time. For additional information regarding the methods of sale, you should refer to the section entitled “Plan of Distribution” in this offering. There is no minimum number of shares required to be purchased by each investor. The shares offered by the Company will be sold on our behalf by our Chief Operating Officer, Anastasia Shishova. Anastasia Shishova is deemed to be an underwriter of this offering. She will not receive any commissions or proceeds for selling the shares on our behalf. There is uncertainty that we will be able to sell any of the 2,000,000 shares being offered herein by the Company. All of the shares being offered for sale by the Company will be sold at a fixed price of $1.00 per share for the duration of the Offering. There is no minimum amount we are required to raise from the shares being offered by the Company and any funds received will be immediately available to us. There is no guarantee that we will sell any of the securities being offered in this offering. Additionally, there is no guarantee that this Offering will successfully raise enough funds to institute our company’s business plan. Additionally, there is no guarantee that a public market will ever develop and you may be unable to sell your shares.
As of FEBRUARY 22, 2018, the Company had 18,681,321 shares of Common Stock outstanding. Our securities are not listed on any national securities exchange. Our common stock is presently quoted for trading on the OTC Market under the symbol “CGLD”. On February 14, 2018 the last sales price of our common stock as reported was $0.043 per share.
This primary offering will terminate upon the earliest of (i) such time as all of the common stock has been sold pursuant to the Offering Statement or (ii) 365 days from the qualified date of this offering circular, unless extended by our directors for an additional 90 days. We may however, at any time and for any reason terminate the offering.
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SHARES OFFERED |
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PRICE TO |
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|
SELLING AGENT |
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NET PROCEEDS TO THE |
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||
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BY COMPANY |
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PUBLIC |
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|
COMMISSIONS |
|
COMPANY |
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||
|
Per Share |
|
$ | 1.00 |
|
|
Not applicable |
|
$ | 1.00 |
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Minimum Purchase |
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None |
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Not applicable |
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Not applicable |
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||
|
Total (2,000,000 shares) |
|
$ | 2,000,000 |
|
|
Not applicable |
|
$ | 2,000,000 |
|
Currently, our officers and directors owns approximately 76% of our Common Stock and 99% of the voting power of our outstanding capital stock (including common and preferred). After the offering, assuming all the shares being offered on behalf of the company are sold, Ms. Shishova will hold or have the ability to control approximately 69% of our Common Stock and 99% of the voting power of our outstanding capital stock.
| 2 |
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If all the shares are not sold in the company’s offering, there is the possibility that the amount raised may be minimal and might not even cover the costs of the offering, which the Company estimates at $20,000. The proceeds from the sale of the securities will be placed directly into the Company’s account; any investor who purchases shares will have no assurance that any monies, beside their own, will be subscribed to the offering circular. All proceeds from the sale of the securities are non-refundable, except as may be required by applicable laws. All expenses incurred in this offering are being paid for by the company. There has been no public trading market for the common stock of BUSCAR COMPANY.
The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act, which became law in April 2012 and will be subject to reduced public company reporting requirements.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF A SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.
GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.
THESE SECURITIES ARE SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE SHARES ONLY IF YOU CAN AFFORD THE COMPLETE LOSS OF YOUR INVESTMENT. PLEASE REFER TO ‘RISK FACTORS’ BEGINNING ON PAGE 11.
THE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.
You should rely only on the information contained in this offering circular and the information we have referred you to. We have not authorized any person to provide you with any information about this Offering, the Company, or the shares of our Common Stock offered hereby that is different from the information included in this offering circular. If anyone provides you with different information, you should not rely on it.
The date of this offering circular is FEBRUARY 22, 2018
The following table of contents has been designed to help you find important information contained in this offering circular.
We encourage you to read the entire offering circular.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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You should rely only on the information contained in this offering circular or contained in any free writing offering circular filed with the Securities and Exchange Commission. We have not authorized anyone to provide you with additional information or information different from that contained in this offering circular filed with the Securities and Exchange Commission. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We are offering to sell, and seeking offers to buy, our common stock only in jurisdictions where offers and sales are permitted. The information contained in this offering circular is accurate only as of the date of this offering circular, regardless of the time of delivery of this offering circular or any sale of shares of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date.
| 4 |
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| Table of Contents |
In this offering circular, ‘‘Buscar Company,’’ the “Company,’’ ‘‘we,’’, “CGLD”, ‘‘us,’’ and ‘‘our,’’ refer to Buscar Company, Inc., unless the context otherwise requires. Unless otherwise indicated, the term ‘‘fiscal year’’ refers to our fiscal year ending March 31. Unless otherwise indicated, the term ‘‘common stock’’ refers to shares of the Company’s common stock.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This following information specifies certain forward-looking statements of management of the Company. Forward-looking statements are statements that estimate the happening of future events and 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 compiled by our management on the basis of assumptions made by 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 those forward-looking statements. These forward-looking statements are based on current information and expectation, and we assume no obligation to update any such forward-looking statements.
Glossary
Throughout this prospectus, we use terms associated with the thoroughbred horseracing industry. The following glossary of terms is intended to assist prospective investors who may not be familiar with these terms.
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Barn Foreman |
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A person who handles the grooms and hot walkers and implements the horse’s day-to-day routine. |
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Blacksmithing |
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Equine hoof care, including the trimming and balancing of horses’ hooves and the placing of shoes on their hooves. |
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Board |
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The term commonly used when a horse lives at a third party facility where the owner pays money to the facility owner to take care of the horse. |
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Breaking |
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To train a young horse to wear a bridle and saddle, carry a rider and respond to a rider’s commands. |
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Broodmare |
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A filly or mare that has been bred and is used to produce foals. |
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Campaigned |
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To race in a number or series of competitions. |
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Champion |
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Any Eclipse Award winner is referred to as a “champion” in the United States. |
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| Table of Contents |
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Claiming |
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The process by which a licensed person may purchase a horse entered in a race designated as a “claiming race” for a predetermined price. When a horse has been claimed, its new owner assumes title after the starting gate opens although the former owner is entitled to all purse money earned in that race. |
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Colt |
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An ungelded male horse four years old or younger. |
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The shape and correctness of the anatomy of a horse. |
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The person offering a horse for sale through an auction either as or on behalf of the owner or vendor of the horse. |
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The mother of a horse. |
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Eclipse Award |
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The Eclipse Award of Merit is the thoroughbred racing industry’s highest honor and is co-sponsored by the National Thoroughbred Racing Association, Daily Racing Form and the National Turf Writers Association. The Eclipse Awards are year-end awards honoring the top horses in 11 separate categories; the leading owner, trainer, jockey, apprentice jockey and breeder; and members of the media who have demonstrated excellence in their coverage of the sport. |
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Entry Fee |
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The money paid to enter a horse in a stakes race. |
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Exercise Rider |
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A rider who is licensed to exercise a horse during its morning training session. |
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Filly |
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A female horse four years old or younger. |
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Foal |
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A horse of either sex in its first year of life. The term “foal” can also denote the offspring of either a male or female parent. |
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Full Field |
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When a race is filled to capacity. |
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Gelding |
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A surgical procedure to remove both testicles from a male horse. |
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Grade I, II and III Stake Races |
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The top level for stakes races is the graded stakes race, which can have no restrictions other than age or sex. There are three grades, and the grade assigned a race is controlled by the Graded Stakes Committee, which is a committee of the Thoroughbred Owners and Breeders Association that insures the equivalence of Grade I, II and III stakes races regardless of the track being run. Grade I level races are the top tier, Grade II are the second tier and Grade III are the third tier. |
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| Table of Contents |
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Groom |
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A person who cares for a horse in a stable. |
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Horseman |
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A racehorse owner or trainer. |
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Hot Walkers |
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A person who walks horses to cool them out after workouts or races. |
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In Form |
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A horse that has previously been entered in at least one race. |
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International Stud Book Committee |
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An international organization of stud book authorities that meets annually to establish standards of stud book operation in order to ensure the integrity and future development of the thoroughbred breed. Among other things, the International Stud Book Committee establishes standards for operating and maintaining a thoroughbred stud book, breeding and identification of thoroughbreds and the movement of thoroughbreds between stud book authorities. |
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Live horse races |
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When horses are racing live at a track. |
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Live Racing Day |
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A day when there is live racing at a track. |
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Mare |
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A female horse five years old or older. |
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Nomination |
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A fee paid to make a horse eligible to enter a stakes race. |
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Pari Mutuel Wagering |
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A form of wagering in which all money bet is divided up among those who have winning tickets after taxes and other deductions are made. |
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Purse winnings |
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The monetary amount distributed after a race to the owners of the entrants who have finished in (typically) the top four or five positions. |
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Racing Card |
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The schedule of races at a racetrack on a specific day giving information about races, particularly the horses running in each race and their riders and trainers. |
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Racing Secretary |
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The racetrack official who drafts conditions of races and assigns weights for handicap horse races, which are races in which varying amounts of weight are added to the horse saddles in an attempt to even out the competition in case some horses are clearly more dominant than others. |
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Runners |
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The horses participating in a race. |
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Sire |
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The father of a horse. |
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Stakes Race |
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A horse race in which the prize offered is made up at least in part from the stake, or entry fee, that the horse owners must pay. |
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Stakes Winners |
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Horses that have won stakes races. |
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Stallion |
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A male horse used for breeding. |
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Stallion Season |
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The right to breed a mare to a particular stallion during one breeding season. |
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Stud Book |
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A registry and genealogical record that ensures the correct pedigree and identification of every thoroughbred. |
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Stud Fee |
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The price paid by the owner of a female horse to the owner of a stallion for the right to breed to it. |
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The Jockey Club |
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The Jockey Club is the breed registry for all thoroughbred horses in North America. It is responsible for maintaining The American Stud Book, which is a stud book that includes all thoroughbreds foaled in the United States, Canada and Puerto Rico as well as thoroughbreds imported into the United States, Canada and Puerto Rico from other nations that maintain similar thoroughbred registries. |
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Thoroughbred |
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A horse whose parentage traces back to any of three “founding sires.” To be considered a thoroughbred for racing or breeding purposes, a thoroughbred must have satisfied the rules and requirements of The Jockey Club and be registered in “The American Stud Book” or in a foreign stud book recognized by The Jockey Club and the International Stud Book Committee. |
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Thoroughbred Owners and Breeders Association |
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A national trade organization formed in 1961 for thoroughbred owners and breeders. The Thoroughbred Owners and Breeders Association is based in Lexington, Kentucky and its stated mission is to improve the economics, integrity and pleasure of the sport on behalf of thoroughbred owners and breeders. |
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Three-Year olds |
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A horse between three and four years of age. |
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Two-Year olds |
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A horse between two and three years of age. |
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Yearling |
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A horse in its second calendar year of life, beginning Jan. 1 of the year following its birth. |
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Weanling |
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A newly weaned horse that is under 1 year old. |
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The Company
Our business address is 1624 Market St Suite 202-90862 Denver, CO 80202. Our telephone number is (661) 418-7842 and our Internet website address is www.buscarcompany.com. The information contained in, or that can be accessed through, our website is not part of this registration statement.
Buscar Company. (“Buscar”, “we”, “us”, “our”, the “Company”) was incorporated in Nevada as Cascade Springs Ltd. on January 19, 2010. In 2012, we amended our Articles of Incorporation to change our name to Colorado Gold Mines, Inc. On June 18, 2014, changed our name to Buscar Oil, Inc. On May 19, 2015, the Company changed it’s name to Buscar Company. Buscar is domiciled in the state of Nevada, and its corporate headquarters are located in Lousville, KY. The Company selected March 31 as its fiscal year end.
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The Company’s primary business is the breeding and selling of thoroughbreds. The Company is breeding in Kentucky. The breeding season typically runs from February through May. Under the rules of racing, every foal (a baby thoroughbred) is given a birthday of January 1 of the year of its birth regardless of its actual date of birth. The Company will generate revenue from its breeding operations through the sale of the foals and purse winnings from the foals the Company keeps. While the Company is building its breeding operations, the Company will own and manage thoroughbreds that will race in allowance or stakes races. This will allow the Company to begin to develop relationships with other owners and trainers for the benefit of its breeding operations.
The Company is an early stage company. Additionally, the Company’s auditor has expressed substantial doubt about our ability to continue as a going concern. The Company needs to raise additional capital to continue operations and to implement its plan of operations. The Company has insufficient capital to continue operations for the next 12 months.
Our auditors have issued a going concern opinion and the reasons noted for issuing the opinion are our lack of revenues and capital.
This is the current corporate organization:
This Offering
All dollar amounts refer to US dollars unless otherwise indicated.
As of the date of this offering, we have 18,681,321 shares of common stock issued and outstanding. Through this offering, we intend to offer 2,000,000 shares for offering to the public. The price at which we offer these shares is fixed at $1.00 per share for the duration of the offering. There is no arrangement to address the possible effect of the offering on the price of the stock. We will receive all proceeds from the sale of the common stock.
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Securities being offered by the Company |
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2,000,000 shares of common stock, at a fixed price of $1.00 offered by us in a direct offering. Our offering will terminate upon the earliest of (i) such time as all of the common stock has been sold pursuant to the Offering Statement or (ii) 365 days from the qualified date of this offering circular unless extended by our Board of Directors for an additional 90 days. We may however, at any time and for any reason terminate the offering. |
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Securities being offered by the Selling Stockholders |
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None. |
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Offering price per share |
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We will sell the shares at a fixed price per share of $1.00 for the duration of this Offering. |
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Number of shares of common stock outstanding before the offering of common stock |
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18,681,321 common shares are currently issued and outstanding. |
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Number of shares of common stock outstanding after the offering of common stock |
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20,681,321 common shares will be issued and outstanding if we sell all of the shares we are offering herein. |
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Number of shares of preferred stock outstanding before the offering of common stock |
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The following Preferred shares are currently issued and outstanding: 8,000,000 shares of Series A Preferred Stock 9,650,000 shares of Series B Preferred |
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Number of shares of preferred stock outstanding after the offering of common stock |
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The following Preferred shares will be issued and outstanding after offering: 8,000,000 shares of Series A Preferred Stock 9,965,000 shares of Series B Preferred |
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The minimum number of shares to be sold in this offering |
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None. |
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Market for the common shares |
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There is a public market for the common shares on OTC PINKS under the symbol “CGLD”. As of FEBRUARY 22, 2018, CGLD is trading at $0.0426 X $0.0499 per share. The last transaction price was at $0.05
The offering price for the shares will remain at $0.10 per share for the duration of the offering. |
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Use of Proceeds |
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We intend to use the net proceeds to us for working capital, acquire additional broodmares and pay for stud fees. |
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Termination of the Offering |
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This offering will terminate upon the earlier to occur of (i) 365 days after this Offering Statement becomes qualified with the Securities and Exchange Commission, or (ii) the date on which all 2,000,000 shares registered hereunder have been sold. We may, at our discretion, extend the offering for an additional 90 days. At any time and for any reason we may also terminate the offering. |
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Subscriptions: |
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All subscriptions once accepted by us are irrevocable. |
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Risk Factors: |
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See “Risk Factors” and the other information in this offering circular for a discussion of the factors you should consider before deciding to invest in shares of our common stock. |
Risk Factors
An investment in our shares involves a high degree of risk and many uncertainties. You should carefully consider the specific factors listed below, together with the cautionary statement that follows this section and the other information included in this Offering Circular, before purchasing our shares in this offering. If one or more of the possibilities described as risks below actually occur, our operating results and financial condition would likely suffer and the trading price, if any, of our shares could fall, causing you to lose some or all of your investment. The following is a description of what we consider the key challenges and material risks to our business and an investment in our securities.
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This offering circular contains forward-looking statements that involve risk and uncertainties. We use words such as “anticipate”, “believe”, “plan”, “expect”, “future”, “intend”, and similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this filing. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us as described in the “Risk Factors” section and elsewhere in this offering circular.
Investing in the Company’s Securities is very risky. You should be able to bear a complete loss of your investment. You should carefully consider the following factors, including those listed in this Securities Offering.
An investment in our Common Stock is highly speculative and involves a high degree of risk. Before making an investment decision, you should carefully consider the risks described below together with all of the other information included in this registration statement. The statements contained in or incorporated into this registration statement. that are not historic facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. If any of the following risks actually occurs, our business, financial condition or results of operations could be harmed. In that case, the value of our Common Stock could decline, and an investor in our securities may lose all or part of their investment.
The Company’s auditors have issued a going concern opinion that the Company’s may not be able to continue without raising additional capital therefore needs to raise additional capital to continue its operations and to implement its growth plan.
Our auditors and management has concluded that there is substantial doubt about our ability to continue as a going concern. We are a development stage company and may not been able to effectively implement our business plan. There can be no assurance that there will be an opportunity to generate revenues from our contemplated business activities. The revenues and income potential of our proposed business and operations are unproven. The lack of our operating history and the unproven nature of our business strategy makes it difficult to evaluate the future prospects of our business. We are currently experiencing losses resulting from the fact that we are incurring operating expenses and are not generating any revenues.
Most racehorse ownership is not profitable will materially and adversely affects our business, financial condition and results of operations.
The business of training and racing thoroughbred racehorses is a high-risk venture and most racehorse ownership is not profitable. In particular, studies in the U.S. market have concluded that financial returns from owning racehorses are negative in the aggregate. These studies also suggest that investors pay, in effect, two premiums (which can be thought of as amounts in excess of the amount an investor would ordinarily be expected to pay on the basis of the discounted cash flow anticipated from another investment of similar risk) when investing in racehorses: a premium to enter the sport and, for higher priced horses, a premium related to the purchase of a potential champion. There is no assurance that any of our horses will generate positive returns or that we will not lose a portion or all of the capital we invest in them and that investors will not lose a portion or all of the capital they invest. Among other things, thoroughbreds are subject to injury and disease which can result in forced retirement from racing or, at the extreme, natural death or euthanasia of the animal. Even if a thoroughbred has an excellent bloodline, there is no assurance that the racing performance of the thoroughbred will conform to the bloodline. There can be no assurance that the value of our horses will not decrease in the future or that we will not incur losses on the racing careers or sale or other disposition of any or all of our horses. Any such circumstance will materially and adversely affect our business, financial condition and results of operations.
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We may not have sufficient proceeds from the offering or our operations to sustain our operations through the end of our operating period.
We estimate that we will need an aggregate of approximately $2.0 million to fully implement our expansion and cover ongoing expenses. There can be no assurance that the net proceeds raised in the offering will be sufficient to implement our business plan during our operating period. Furthermore, there can be no assurance that we will achieve the same financial stability as our sister companies or that an investment in us will not ultimately be riskier than an investment in one of our sister companies.
Working capital may prove to be insufficient, including because unanticipated operating expenses arise, our horses sell or less than we expected at auction, casualty events occur, our horses require major surgeries or other medical treatments that are not carried out pursuant to the training and maintenance agreement. If we do not raise enough proceeds in the offering, if we are unable to realize sufficient future revenues or if for any other reason we do not have sufficient working capital to continue operations we may be forced to cease operations and liquidate. We have no commitments for future debt or equity financing and we cannot be sure that any financing would be available in a timely manner, on terms acceptable to us, or at all. Any equity financing could dilute ownership of existing stockholders and any borrowed money could involve restrictions on future capital raising activities and other financial and operational matters, which could materially and adversely affect our business, financial condition and results of operations. If we were unable to obtain financing as needed, we could cease to be a going concern.
The costs and burdens of being a U.S. public reporting company are substantial. Compliance with changing laws, regulations, and standards relating to corporate governance and public disclosure, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Sarbanes-Oxley Act of 2002 and other SEC regulations, may require significant management attention and external resources and associated costs.
We do not anticipate having a predictable stream of revenue from operations, and the variability of our revenues may result in cash shortfalls, which would in turn have a material adverse effect on us.
We cannot predict with any certainty the future performance of any of our horses in any given race or the value that will be realized upon the sale of any of our horses. If we are unable to achieve a sufficient level of racing revenues during our operating period, or if our operating expenses are significantly higher than we expect, we may experience cash shortfalls. If we experience a cash shortfall, we may be forced to cease operations. We have no commitments for future debt or equity financing and we cannot be sure that any financing would be available in a timely manner, on terms acceptable to us, or at all. Any equity financing could dilute ownership of existing stockholders and any borrowed money could involve restrictions on future capital raising activities and other financial and operational matters, which could materially and adversely affect our business, financial condition and results of operations. If we were unable to obtain financing as needed, we could cease to be a going concern.
The popularity of horse racing has declined which may impact our ability to generate revenues and profits from our horses and the value of our horses may also decline, which could have a material and adverse effect on our business, financial condition and results of operations.
There has been a general decline in the number of people attending and wagering on live horse races at North American racetracks, including because of increased competition from other wagering and entertainment alternatives such as spectator sports and other gaming options, and the unwillingness of customers to travel a significant distance to racetracks. Competitive gaming activities include traditional and Native American casinos, video lottery terminals, state-sponsored lotteries and other forms of legalized and non-legalized gaming in the U.S. and other jurisdictions, and we expect the number of competitors to increase. Over the past twenty years, live attendance at horse racetracks in the U.S. and Canada has declined substantially. The total number of races declined from 81,279 in 1990 to 52,771 in 2010. Pari-mutuel wagering on thoroughbred horseracing has declined from a peak of $15.7 billion in 2003 to $11.9 billion in 2010. U.S. and Canadian purses, which represent the amount of available winnings in United States and Canadian thoroughbred horse races (including monies not won and returned to state breeder and other funds), declined by about 4.8% over the same period. The number of race days has also declined significantly. Since 1999, more than 25% of races, excluding major racing events such as the Kentucky Derby, the Belmont Stakes, the Preakness Stakes and the Breeder’s Cup and other racing events held on the same day, have been inadequately funded, meaning that the live handle contribution from all sources to the tracks and purse account was less than the purse paid out to horsemen. Lower interest in horse racing and a continued decline in racetrack attendance could materially and adversely affect our business, financial condition and results of operations because the number and amount of purses may decline. If the opportunity to generate revenues and profits from thoroughbred ownership declines, the value of our horses may also decline, which could have a material and adverse effect on our business, financial condition and results of operations.
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Our horses are subject to impairment testing and potential periodic impairment charges could materially and adversely affect the price of our Common Stock.
We intend to test our horse assets for impairment on a semi-annual basis and more frequently if there is objective evidence of impairment. The value of one or more our horses may become impaired for a variety of reasons, including death, injury or racing losses or lack of training progress. The events and conditions leading to the recording of an impairment charge could have a material and adverse effect on our business, financial condition and results of operations. The recognition of an impairment charge could materially and adversely affect the trading price of our common stock.
Racehorses are prone to injury which may materially and adversely affect our business, financial condition and results of operations.
Racehorses can be susceptible to leg or other injuries, which can adversely affect, shorten or end their ability to race or otherwise adversely affect them. No assurance can be given that our horses will not sustain any injury during stabling, training, racing or transport to and from various racetracks, irrespective of the level of precaution taken. Any injuries that our horses sustain could reduce the racing opportunities available for such horses, the value of such horses and the net proceeds received upon their sale or liquidation and may materially and adversely affect our business, financial condition and results of operations.
The Company currently owns 4 broodmare which materially and adversely affects our business, financial condition and results of operations.
The Company currently owns 4 broodmare and is dependent on raising capital to acquire additional broodmares. If the Company cannot sufficient capital to acquire additional horses it will reduce the opportunity to generate racing revenues and may materially and adversely affect our business, financial condition and results of operations.
Bad weather may adversely affect our business, financial condition and results of operations.
Racetracks operate outdoors and weather conditions surrounding these events may materially and adversely affect our business, financial condition and results of operations, particularly because poor weather may injure a horse or cause us to remove a particular horse from a particular race. Due to weather conditions, racetracks may be required to move a race event to the next live racing day, move the race from a turf track to a dirt track (which could cause us to withdraw a horse from a race in which the type of surface selected no longer suited its running style) or cancel races altogether. These changes would increase our costs and could materially and adversely affect our business, financial condition and results of operations. Poor weather could affect successive events in future periods.
Racetrack attendance can be sensitive to reductions in consumers’ discretionary spending, which may result from economic conditions, unemployment levels and other changes we cannot accurately predict and for which we cannot implement mitigating business strategies.
Demand for particular entertainment and leisure activities can be sensitive to consumers’ disposable incomes, which may be materially and adversely affected by recent economic conditions and the persistence of elevated levels of unemployment. Horseracing and related activities may be similar to other leisure activities in that they represent discretionary expenditures likely to decline during economic downturns. In some cases, the perception of an impending economic downturn or the continuation of a recessionary climate can be enough to discourage consumers from spending on entertainment or leisure activities. Further declines in the residential real estate market, higher energy and transportation costs, and changes in consumer confidence, increases in individual tax rates, and other factors that we cannot accurately predict may reduce disposable income of racetrack customers. This could result in fewer patrons visiting racetracks, gaming and wagering facilities and online wagering sites, and may impact these customers’ ability to wager with the same frequency and maintain their wagering level profiles. Reduced wagering levels and profitability at racetracks could cause certain racetracks to reduce purse sizes, cancel races or cease operations and therefore reduce the opportunity to generate revenues and profits from our horses and cause the value of our horses to decline. Accordingly, these factors could have a material and adverse impact on our business, financial condition and results of operations.
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The Company has limited capitalization and lack of working capital and as a result is dependent on raising funds to grow and expand its business.
Our management has concluded that there is substantial doubt about our ability to continue as a going concern. The Company has extremely limited capitalization and is dependent on raising funds to grow and expand its businesses. The Company will endeavor to finance its need for additional working capital through debt or equity financing. Additional debt financing would be sought only in the event that equity financing failed to provide the Company necessary working capital. Debt financing may require the Company to mortgage pledge or hypothecate its assets, and would reduce cash flow otherwise available to pay operating expenses and acquire additional assets. Debt financing would likely take the form of short-term financing provided by officers and directors of the Company, to be repaid from future equity financing. Additional equity financing is anticipated to take the form of one or more private placements to qualified investors under exemptions from the registration requirements of the 1933 Act or a subsequent public offering. There are no other current agreements or understandings with regard to the form, time or amount of any financing and there is no assurance that any financing can be obtained or that the Company can continue as a going concern.
We may not realize sufficient proceeds from this offering to implement our business plan, as we are offering shares on a direct participation basis with no minimum offering required which may adversely impact the implementation of our business plan.
We are offering shares on a direct participation basis and with no minimum offering. As such we may not receive sufficient proceeds to fund our planned operations or the costs of this offering. If we are not able to receive sufficient proceeds would cause a delay in the implementation of our planned operations. If we do not raise sufficient funds in this offering to fund our proposed operations or even cover the costs of this offering, you may lose your entire investment.
As we do not have an escrow or trust account for any proceeds from this offering, if we file for or are forced into bankruptcy protection, then investors may lose their entire investment.
Invested funds for this offering will not be placed in an escrow or trust account and if we file for bankruptcy protection or a petition for involuntary bankruptcy is filed by creditors against us, your funds may become part of the bankruptcy estate and administered according to the bankruptcy laws. As such, you may lose your investment and your funds will be used to pay creditors.
The Company has limited revenue and limited operating history which make it difficult to evaluate the Company which could restrict your ability to sell your shares.
The Company has only a limited operating history and limited revenues. Activities to date have been limited to researching thoroughbreds to claim, organizational efforts and obtaining initial financing. The Company must be considered in the developmental stage. Prospective investors should be aware of the difficulties encountered by such enterprises, as the Company faces all the risks inherent in any new business, including the absence of any prior operating history, need for working capital and intense competition. The likelihood of success of the Company must be considered in light of such problems, expenses and delays frequently encountered in connection with the operation of a new business and the competitive environment in which the Company will be operating.
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The Company is dependent on key personnel and loss of the services of any of these individuals could adversely affect the conduct of the company’s business.
Initially, success of the Company is entirely dependent upon the management efforts and expertise of Ms. Shishova. A loss of the services of any of these individuals could adversely affect the conduct of the Company’s business. In such event, the Company would be required to obtain other personnel to manage and operate the Company, and there can be no assurance that the Company would be able to employ a suitable replacement for either of such individuals, or that a replacement could be hired on terms which are favorable to the Company. The Company currently maintains no key man insurance on the lives of any of its officers or directors. The Company entered into an employment agreement with our CEO in July 2016. The agreement is deferred until November 2017. This means no salary was owed or accrued until after the first sales begun in November 2017. The material terms of the PSA are as follows:
Term: 10 Years
Salary: $120,000
Stock Awards: 3,000,000 subject to a 10-year lock up agreement and 1,000,000 from the Company’s S-8 upon execution of the PSA.
Allowances: Our CEO may receive allowances up $3,000 per month.
The Company’s dividend policy may restrict growth and lead to dilution.
The Company has not paid dividends on its Common Stock in the past. The Company intends to begin to pay dividends. The Company has decided to distribute at least 20% of its net purse winnings that the Company’s thoroughbreds generate. As a result, the Company will be restricted in its growth potential. In order to grow, the Company will need to raise additional capital which may cause dilution among the Company’s shareholders. However, our ability to pay dividends is subject to limitations imposed by Nevada law. Pursuant to Nevada Revised Statute 78.288, dividends may be paid to the extent that a corporation’s assets exceed it liabilities and it is able to pay its debts as they become due in the usual course of business.
We cannot guarantee that an active trading market will develop for our Common Stock which may restrict your ability to sell your shares.
There can be no assurance that a regular trading market for our Common Stock will ever develop or that, if developed, it will be sustained. Therefore, purchasers of our Common Stock should have long-term investment intent and should recognize that it may be difficult to sell the shares, notwithstanding the fact that they are not restricted securities. We cannot predict the extent to which a trading market will develop or how liquid a market might become.
Our shares will be subject to the “penny stock” rules which might subject you to restrictions on marketability and you may not be able to sell your shares.
Broker-dealer practices in connection with transactions in “Penny Stocks” are regulated by certain penny stock rules adopted by the Securities and Exchange Commission. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risk associated with the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker- dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. In addition, the penny stock rules generally require that prior to a transaction in a penny stock; the broker- dealer must make a written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules. The Company’s securities are subject to the penny stock rules; therefore investors may find it more difficult to sell their securities.
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99% of the total voting power thereby acting together they have the ability to choose management or impact operations.
Currently, our officers and directors owns approximately 76% of our Common Stock and 99% of the voting power of our outstanding capital stock (including common and preferred). Assuming all securities are sold, our officers and directors owns approximately 69% of our Common Stock and 99% of the voting power of our outstanding capital stock (including common and preferred) As a result, our officers and directors will have control of the Company even if the full offering is subscribed for and be able to choose all of our directors. Their interests may differ from the ones of other stockholders. Factors that could cause his interests to differ from the other stockholders include the impact of corporate transactions on the timing of business operations and his ability to continue to manage the business given the amount of time he is able to devote to us.
Purchasers of the offered shares may not participate in our management and, therefore, are dependent upon his management abilities. The only assurance that our shareholders, including purchasers of the offered shares, have that our sole officer and director will not abuse his discretion in executing our business affairs, as his fiduciary obligation and business integrity. Such discretionary powers include, but are not limited to, decisions regarding all aspects of business operations, corporate transactions and financing.
Accordingly, no person should purchase the offered shares unless willing to entrust all aspects of management to the sole officer and director, or his successors. Potential purchasers of the offered shares must carefully evaluate the personal experience and business performance of our management.
This offering circular contains forward-looking statements and information relating to us, our industry and to other businesses. Our actual results may differ materially from those contemplated in our forward looking statements which may negatively impact our company.
These forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to our management. When used in this registration statement, the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are subject to risks and uncertainties that may cause our actual results to differ materially from those contemplated in our forward-looking statements. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this registration statement. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this registration statement or to reflect the occurrence of unanticipated events. The Company is excluded from the safe harbors in section 27A of the Securities Act and Section 21D of the Exchange Act so long as the Company is an issuer of penny stocks.
We may need additional financing which we may not be able to obtain on acceptable terms. If we are unable to raise additional capital, as needed, the future growth of our business and operations would be severely limited.
A limiting factor on our growth, and is our limited capitalization which could impact our ability execute on our divisions business plans. If we raise additional capital through the issuance of debt, this will result in increased interest expense. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of the Company held by existing shareholders will be reduced and our shareholders may experience significant dilution. In addition, new securities may contain rights, preferences or privileges that are senior to those of our Common Stock. If additional funds are raised by the issuance of debt or other equity instruments, we may become subject to certain operational limitations (for example, negative operating covenants). There can be no assurance that acceptable financing necessary to further implement our plan of operation can be obtained on suitable terms, if at all. Our ability to develop our business, fund expansion, develop or enhance products or respond to competitive pressures, could suffer if we are unable to raise the additional funds on acceptable terms, which would have the effect of limiting our ability to increase our revenues or possibly attain profitable operations in the future.
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Future sales by our stockholders may adversely affect our stock price and our ability to raise funds.
Any future sales of this stock may adversely affect the market price of the Common Stock. Sales of our Common Stock in the public market could lower our market price for our Common Stock. Sales may also make it more difficult for us to sell equity securities or equity-related securities in the future at a time and price that management deems acceptable or at all.
We may, in the future, issue additional common stock, which would reduce then-existing investors’ percentage of ownership and may dilute our share value.
Our certificate of incorporation authorizes the issuance of up to 500,000,000 shares of common stock. Accordingly, the board of directors will be empowered, without further stockholder approval, to issue additional shares of capital stock up to the authorized amount, which would dilute the current and future shareholders.
The market price of our Common Stock may fluctuate significantly which could cause a decline in value of your shares.
The market price of our Common Stock may fluctuate significantly in response to factors, some of which are beyond our control. The market price of our common stock could be subject to significant fluctuations and the market price could be subject to any of the following factors:
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· |
our failure to achieve and maintain profitability; |
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· |
changes in earnings estimates and recommendations by financial analysts; |
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· |
actual or anticipated variations in our quarterly and annual results of operations; |
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· |
changes in market valuations of similar companies; |
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|
· |
announcements by us or our competitors of significant contracts, new services, acquisitions, commercial relationships, joint ventures or capital commitments; |
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|
· |
loss of significant clients or customers; |
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|
· |
loss of significant strategic relationships; and |
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|
· |
general market, political and economic conditions. |
Recently, the stock market in general has experienced extreme price and volume fluctuations. Continued market fluctuations could result in extreme volatility in the price of shares of our Common Stock, which could cause a decline in the value of our shares.
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Our by-laws provide for indemnification of our officers and directors at our expense and limit their liability which may result in a major cost to us and hurt the interests of our shareholders because corporate resources may be expended for the benefit of officers and/or directors.
Our bylaws require that we indemnify and hold harmless our officers and directors, to the fullest extent permitted by law, from certain claims, liabilities and expenses under certain circumstances and subject to certain limitations and the provisions of Nevada law. Under Nevada law (Section 78.7502 of the Nevada Revised Statutes, a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that he is or was a director, officer, employee or agent of the corporation, against expenses, attorney’s fees, judgments, fines and amounts paid in settlement, actually and reasonably incurred by him in connection with an action, suit or proceeding if the person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation.
The Company will incur additional costs associated with being a public company which may result in our shareholders losing their entire investment.
The additional costs you will incur as a public company fees associated to filing the required filings with the SEC and OTC Markets. The company expects these annual costs to be approximately $40,000 for the year. There is a risk that our shareholders will lose their entire investment if we are unable to raise the additional financing or generate sufficient income to pay these additional costs.
The Company’s sole officer and director can determine his salary without approval from shareholders which may result in our shareholders losing their entire investment.
Since our sole officer and director may determine his salary without approval from shareholders there is a risk that there will insufficient funds available from the net income. There is a risk that our shareholders will lose their entire investment if we are unable to raise the additional financing or generate sufficient income to pay any salary to our officer.
There can be no assurances that the value of the thoroughbreds which are acquired by the Company will not decrease in the future which may have an adverse impact on our Company’s activities and financial position.
The business of training and racing thoroughbreds is a high-risk venture. There is no assurance that any thoroughbred acquired by the Company will possess qualities of a championship character. While a thoroughbred may have an excellent bloodline, there is no assurance that the racing performance of the thoroughbred will conform to the bloodline. Moreover, thoroughbreds are subject to injury and disease which can result in forced retirement from racing, or at the extreme, natural death or euthanasia of the animal. There can be no assurances that the value of the thoroughbreds which may be acquired and owned by the Company, will not decrease in the future or that the Company will not subsequently incur losses on the racing careers or sale or other disposition of any or all of the thoroughbreds which the Company may acquire.
The valuation of thoroughbreds is a highly speculative matter. If the valuation of the Company’s thoroughbreds decrease the Company will still be responsible for the expenses of maintaining, training and racing the thoroughbreds even at lesser quality races which could negatively impact the revenues from the thoroughbreds.
The valuation of thoroughbreds is a highly speculative matter and prices have fluctuated widely in recent years. The success of the Company is dependent upon the present and future values of thoroughbreds generally, and of the Company’s thoroughbreds in particular, as well as the racing success of the Company’s thoroughbreds. Although the future value of thoroughbreds generally cannot be predicted, it will be affected by the state of the economy, the amount of money available for investment purposes, and the continued interest of investors and enthusiasts in the thoroughbred industry. The expense of maintaining, boarding, training and racing thoroughbreds can be expected to increase during the term of the Company, regardless of what happens to the future market price of thoroughbreds or the performance of the Company thoroughbreds.
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If the Company’s breeding offspring are unsuccessful in racing or injured, their value will be adversely affected. This may have a negative impact of the Company’s valuation and its revenue.
Thoroughbred racing is extremely speculative and expensive. If the Company breeding offspring are unsuccessful in racing, their value will be adversely affected. Furthermore, revenues from auctions are dependent upon perceived value of the stud and dam and their previous offspring. Additionally, the value of thoroughbreds may be impacted by the size of the purses which depends in general on the extent of public interest in thoroughbred racing, and in particular on the relative quality of the specific horses in contention in any specific meeting or race. Although public interest has been strong in recent years, there is no assurance that public interest will remain constant, much less increase. Legalized gambling proliferating in many states threatens to curtail interest in horse racing as a means of recreation. In addition, there is no assurance that the Company thoroughbreds will be of such quality that they may compete in any races which offer purses of a size sufficient to have auction prices that will cover the Company’s expenses.
Thoroughbred racing could be subjected to restrictive regulation or banned entirely which could adversely affect the conduct of the company’s business.
The racing future of and/or market for the Company’s thoroughbreds depends upon continuing governmental acceptance of thoroughbred racing as a form of legalized gambling. However, at any time, thoroughbred racing could be subjected to restrictive regulation or banned entirely. The value of the Company’s thoroughbreds would be substantially diminished by any such regulation or ban. Thoroughbred racing is regulated in various states and foreign countries by racing regulatory bodies with which the owners of thoroughbred racehorses must be licensed.
State racing laws and regulations may limit our ability to race our horses in certain states.
We are subject to considerable federal, state and local government regulation relating to the ownership of racehorses and other related matters. Many of these regulations are subject to differing interpretations that may, in certain cases; result in unintended consequences that could materially and adversely impact the effective operation of our business. We will be required to obtain licenses in certain states in order to race our horses in such states. We may not be able to obtain necessary licenses or other approvals on a cost effective and timely basis in order to operate our business. Furthermore, we will depend on continued state approval of legalized thoroughbred horseracing in states where we race our horses. The failure to attain, loss of or material change in our licenses, registrations, permits or approvals may materially limit the number of races we enter, and could have a material and adverse impact on our business, financial condition and results of operations.
Racing laws and regulations in some of the states in which we intend to race our horses limit your ability to acquire and retain our common stock without being licensed as a thoroughbred owner and a violation of those laws and regulations could prevent our horses from racing in those states.
Existing regulations governing thoroughbred racing in various states may limit the ability of individuals and entities to acquire and retain our common stock. Such provisions are designed to regulate ownership and control of corporations engaged in thoroughbred racing. Such statutes provide that ownership of a substantial portion of common stock, generally greater than 3%, 5% or 10% of the outstanding equity in a corporation, must be approved by the racing commission in those jurisdictions.
In California, the owner of record for the Company’s horses will be a wholly owned-subsidiary. This subsidiary will own and manage all the company’s horses to be raced in California. As such, the only equity shareholder will be the registrant. Thereby, the company will not need to disclose to the name of each individual shareholder. However, if these rules shall change then the Company may need to disclose the individual shareholders names or be required to cease operations in California. The Company is looking at the ownership rules in other states to determine which states the company would seek to expand.
These regulations may impact our ability to expand and/or race horses in these states which may have a material adverse effect on our financial position.
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The Company currently does not and does not intend to purchase insurance on its thoroughbred which could require Company resources to be spent to cover any loses from the death or injury of a thoroughbred.
Mortality insurance insures against the death of a horse during the Company’s ownership. Surgical insurance covers possible risks of injury during racing or training. Without insurance the Company is responsible for the cost of injury or in the event of death will lose its investment in the thoroughbred. The payment of such liabilities may have a material adverse effect on our financial position.
A decrease in average attendance per racing date coupled with increasing costs could jeopardize the continued existence of certain racetracks which could negatively impact the Company’s operations.
A decrease in average attendance per racing date coupled with increasing costs could jeopardize the continued existence of certain racetracks which could impact the availability of race tracks available for the Company to race at and then negativity impact its operations.
The Company may not be able to accurately access the value of thoroughbreds it wants to acquire which may result in the Company overpaying for the thoroughbred or prevent the Company from acquiring a thoroughbred which may negatively result our operations.
Prior to the company putting a claim in for a particular horse, the Company is unable to perform any veterinary tests and therefore must solely rely on the thoroughbred’s past performances, workouts and a visual inspection while the thoroughbred walks from the barn to the track prior to the race. As such we may not be able to accurately access with any certainty the value of or the future performance of any horse that we are interested in claiming. As a result, the Company may overpay for a thoroughbred it purchases or not obtain the value of the thoroughbred that the company expected when acquiring the thoroughbred. These may negativity impact the company’s operations.
If the Company acquires a thoroughbred for its allowance/stakes division through an auction, then the Company is able to have a vet check the thoroughbred and perform significant visual inspections of the thoroughbred as well. However, the thoroughbred would have not competed in a race and as such the Company could not rely on the thoroughbred’s past performance but rely solely on the confirmation (how the thoroughbred looks), the results of the vet tests and the sire and dam of the thoroughbred. As such we may not be able to accurately access with any certainty the value of or the future performance of any horse that we are interested in acquiring. As a result, the Company may overpay for a thoroughbred it purchases or not obtain the value of the thoroughbred that the company expected when acquiring the thoroughbred. These may negativity impact the company’s operations.
The procedure for a claiming race is as follows: the trainer puts a claim in for the horse prior to the race. Immediately upon the start of the race the horse is considered sold to the new owner, however, the previous owner maintains any purse winnings from that race. Whereas at an auction, the Company will bid to acquire a thoroughbred and the person who has the highest bid wins the thoroughbred. Claiming races are the lowest level of races and as a result offer the lowest average purse sizes.
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There are potential conflicts of interests between the company and its officer and which may have a material and adverse impact on our business, financial condition and results of operations.
Our sole officer and director, is also the controlling shareholder and works approximately 30 hours per week for the Company, is engaged in the business of owning, racing, and investing in thoroughbred ventures which may give rise to conflicts of interest. Ms. Shishova may enjoy an informational advantage over the Company and his fiduciary duties to the company could potentially conflict with his desire to purchase thoroughbreds for his personal use. The company has not yet adopted written procedures for resolving potential conflicts and once the company does these procedures once adopted may not be effective because we only have one director and officer. These conflicts of interest may have a material and adverse impact on our business, financial condition and results of operations.
Industry practices and structures have developed which may have not been attributable solely to profit-maximizing economic decision-making which may have an adverse impact on our Company’s activities business.
Because thoroughbred racing is a sport as well as a business, industry practices and structures have developed which may have not been attributable solely to profit-maximizing economic decision-making. For instance, a particular bloodline could command substantial prices owing principally to the interest of a small group of individuals having particular goals unrelated to economics. A decline in this interest could be expected to adversely affect the value of the bloodline.
The Company lacks sufficient internal controls and implementing acceptable internal controls will be difficult with only 1 officer and director thereby it will be difficult to ensure that information required to be disclosed in our reports filed and submitted under the Exchange Act is recorded, processed, summarized and reported as and when required.
The Company lacks internal controls over its financials and it may be difficult to implement such controls with only 1 officer and director. The lack of these internal controls make it difficult to ensure that information required to be disclosed in our reports filed and submitted under the Exchange Act is recorded, processed, summarized and reported as and when required.
The reason we believe our disclosure controls and procedures are not effective is because:
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· | there is a lack of segregation of duties necessary for a good system of internal control due to insufficient accounting staff due to the size of the company. |
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· | the staffing of accounting department is weak due to the lack of qualifications and training, and the lack of formal review process. |
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· | the control environment of the Company is weak due to the lack of an effective risk assessment process, the lack of internal audit function and insufficient documentation and communication of the accounting policies. |
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· | Failure in the operating effectiveness over controls related to recording revenue. |
We are an “emerging growth company,” and any decision on our part to comply only with certain reduced disclosure requirements applicable to “emerging growth companies” could make our common stock less attractive to investors.
We are an “emerging growth company,” as defined in the JOBS Act, and, for as long as we continue to be an “emerging growth company,” we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to “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, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We could be an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.
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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 have elected to opt in to the extended transition period for complying with the revised accounting standards.
Because we have elected to defer compliance with new or revised accounting standards, our financial statement disclosure may not be comparable to similar companies.
We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of our election, our financial statements may not be comparable to companies that comply with public company effective dates. Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies for further discussion of this exemption.
Our status as an “emerging growth company” under the JOBS Act of 2012 may make it more difficult to raise capital as and when we need it.
Because of the exemptions from various reporting requirements provided to us as an “emerging growth company” and because we will have an extended transition period for complying with new or revised financial accounting standards, we may be less attractive to investors and it may be difficult for us to raise additional capital as and when we need it. Investors may be unable to compare our business with other companies in our industry if they believe that our financial accounting is not as transparent as other companies in our industry. If we are unable to raise additional capital as and when we need it, our financial condition and results of operations may be materially and adversely affected.
Summary
We believe it is important to communicate our expectations to investors. There may be events in the future, however, that we are unable to predict accurately or over which we have no control. The risk factors listed on the previous pages as well as any cautionary language in this registration statement, provides all known material risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward looking statements. The occurrence of the events our business described in the previous risk factors and elsewhere in this registration statement could negatively impact our business, cash flows, results of operation, prospects, financial condition and stock price.
Net tangible book value dilution per share of common stock to new investors represents the difference between the amount per share paid by purchasers in this offering and the as adjusted net tangible book value per share of common stock immediately after completion of this offering. After giving effect to our sale of the maximum offering amount of $2,000,000 in securities, assuming $1,000 in offering or other expenses, our as-adjusted net tangible book value as of September 30, 2017 would have been approximately $2,770,412, or $0.134 per share. This represents an immediate increase in net tangible book value of $0.0927 per share to existing stockholders and an immediate dilution in net tangible book value of $0.8660 per share to investors of this offering.
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The following table illustrates the effect of dilution if 25%, 50%, 75% or 100% of the offering is sold:
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25% of |
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If 50% of |
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|
If 75% of |
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If 100% of |
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||||
|
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|
shares sold |
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|
shares sold |
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|
shares sold |
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shares sold |
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||||
|
Net tangible book value before offering |
|
$ | 0.0413 |
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|
$ | 0.0413 |
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|
$ | 0.0413 |
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|
$ | 0.0413 |
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|
Net Tangible book value per share after offering |
|
$ | 0.0662 |
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|
$ | 0.0900 |
|
|
$ | 0.1125 |
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|
$ | 0.1340 |
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|
Net increase to original shareholders |
|
$ | 0.0249 |
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|
$ | 0.0487 |
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|
$ | 0.0712 |
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|
$ | 0.0927 |
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Decrease in investment to new shareholders |
|
$ | 0.9338 |
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|
$ | 0.9100 |
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|
$ | 0.8875 |
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|
$ | 0.8660 |
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Dilution to new shareholders |
|
|
93.4 | % |
|
|
91.0 | % |
|
|
88.7 | % |
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|
86.6 | % |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Original percentage of ownership after offering |
|
|
97.4 | % |
|
|
94.9 | % |
|
|
92.6 | % |
|
|
90.3 | % |
|
Common shares outstanding prior to investment |
|
|
18,681,321 |
|
|
|
18,681,321 |
|
|
|
18,681,321 |
|
|
|
18,681,321 |
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New common shares issued |
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|
500,000 |
|
|
|
1,000,000 |
|
|
|
1,500,000 |
|
|
|
2,000,000 |
|
|
Total common shares outstanding |
|
|
19,181,321 |
|
|
|
19,681,321 |
|
|
|
20,181,321 |
|
|
|
20,681,321 |
|
None
DETERMINATION OF OFFERING PRICE
The offering price of the common stock has been arbitrarily determined and bears no relationship to any objective criterion of value. The price does not bear any relationship to our assets, book value, historical earnings or net worth. No valuation or appraisal has been prepared for our business. We cannot assure you that a public market for our securities will develop or continue or that the securities will ever trade at a price higher than the offering price.
Our common stock offered through this offering is being made by Anastasia Shishova our Chief Operating Officer, on behalf of the Company and by the selling shareholder through a direct public offering. Our Common Stock may be sold or distributed from time to time by Ms. Shishova or the selling shareholder or directly to one or more purchasers utilizing general solicitation through the internet, social media, and any other means of widespread communication notwithstanding the selling shareholders may also use crowdfunding sites, brokers, dealers, or underwriters who may act solely as agents at a fixed price of $1.00 per share. The sale of our common stock offered by us or the selling shareholder through this offering may be effected by one or more of the following methods: internet, social media, and any other means of widespread communication including but not limited to crowdfunding sites, ordinary brokers’ transactions;· transactions involving cross or block trades; through brokers, dealers, or underwriters who may act solely as agents; in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through agents;· in privately negotiated transactions; or· any combination of the foregoing. The selling stockholders may also sell shares of Common Stock under Rule 144 promulgated under the Securities Act, if available, rather than under this prospectus. In addition, the selling stockholder may transfer the shares of our common stock by other means not described in this prospectus. Brokers, dealers, underwriters, or agents participating in the distribution of the shares as agents may receive compensation in the form of commissions, discounts, or concessions from the selling stockholder and/or purchasers of the common stock for whom the broker-dealers may act as agent.
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The Company has 18,681,321 shares of common stock issued and outstanding as of the date of this offering circular. The Company is registering an additional 2,000,000 shares of its common stock for sale at the price of $1.00 per share.
There is no arrangement to address the possible effect of the offering on the price of the stock.
In connection with the Company’s selling efforts in the offering, Anastasia Shishova will not register as a broker-dealer pursuant to Section 15 of the Exchange Act, but rather will rely upon the “safe harbor” provisions of SEC Rule 3a4-1, promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Generally speaking, Rule 3a4-1 provides an exemption from the broker-dealer registration requirements of the Exchange Act for persons associated with an issuer that participate in an offering of the issuer’s securities. Cameron Cox is not subject to any statutory disqualification, as that term is defined in Section 3(a)(39) of the Exchange Act. Cameron Cox will not be compensated in connection with his participation in the offering by the payment of commissions or other remuneration based either directly or indirectly on transactions in our securities. Mr. Cox is not, nor has he been within the past 12 months, a broker or dealer, and he is not, nor has he been within the past 12 months, an associated person of a broker or dealer. At the end of the offering, Mr. Cox will continue to primarily perform substantial duties for the Company or on its behalf otherwise than in connection with transactions in securities. Cameron Cox will not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on Exchange Act Rule 3a4-1(a)(4)(i) or (iii).
The Company will receive all proceeds from the sale of the 2,000,000 shares being offered on behalf of the company itself. The Company will not receive any proceeds from the sale of the selling shareholder’s shares. The price per share is fixed at $1.00 for the duration of this offering. Our common stock is listed on a public exchange and quoted over-the counter, OTC PINK, under the symbol, CGLD. The Company’s shares may be sold to purchasers from time to time directly by and subject to the discretion of the Company. The shares of common stock sold by the Company or selling shareholder may be occasionally sold in one or more transactions; all shares sold under this offering circular will be sold at a fixed price of $1.00 per share.
The Company will pay all expenses incidental to the registration of the shares (including registration pursuant to the securities laws of certain states), which we expect to be no more than $20,000.
Procedures for Subscribing
If you decide to subscribe for any shares in this offering, you must
- Execute and deliver a subscription agreement; and
- Deliver a check or certified funds to us for acceptance or rejection.
All checks for subscriptions must be made payable to “Buscar Company”. The Company will deliver stock certificates attributable to shares of common stock purchased directly to the purchasers within ninety (90) days of the close of the offering.
Right to Reject Subscriptions
We have the right to accept or reject subscriptions in whole or in part, for any reason or for no reason. All monies from rejected subscriptions will be returned immediately by us to the subscriber, without interest or deductions. Subscriptions for securities will be accepted or rejected with letter by mail within 48 hours after we receive them.
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Our offering is being made on a self-underwritten basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $1.00 The following table sets forth the uses of proceeds assuming the sale of 25%, 50%, 75% and 100% of the securities offered for sale by the Company. There is no assurance that we will raise the full $2,000,000 as anticipated.
The above figures represent only estimated costs for the next 12 months.
Item 7: Description of Business
Our business address is 1624 Market St Suite 202-90862 Denver, CO 80202. Our telephone number is (661) 418-7842 and our Internet website address is www.buscarcompany.com. The information contained in, or that can be accessed through, our website is not part of this registration statement.
Buscar Company. (“Buscar”, “we”, “us”, “our”, the “Company”) was incorporated in Nevada as Cascade Springs Ltd. on January 19, 2010. In 2012, we amended our Articles of Incorporation to change our name to Colorado Gold Mines, Inc. On June 18, 2014, changed our name to Buscar Oil, Inc. On May 19, 2015, the Company changed it’s name to Buscar Company. Buscar is domiciled in the state of Nevada and its corporate headquarters are located in Oscala, FL. The Company selected March 31 as its fiscal year end.
The Company’s primary business is the breeding and selling of thoroughbreds. The Company is breeding in Kentucky. The breeding season typically runs from February through May. Under the rules of racing, every foal (a baby thoroughbred) is given a birthday of January 1 of the year of its birth regardless of its actual date of birth. The Company will generate revenue from its breeding operations through the sale of the foals and purse winnings from the foals the Company keeps. While the Company is building its breeding operations, the Company will own and manage thoroughbreds that will race in allowance or stakes races. This will allow the Company to begin to develop relationships with other owners and trainers for the benefit of its breeding operations.
The Company is a developmental stage company. Additionally, the Company’s auditor has expressed substantial doubt about our ability to continue as a going concern. The Company needs to raise additional capital to continue operations and to implement its plan of operations. The Company has insufficient capital to continue operations for the next 12 months.
Our auditors have issued a going concern opinion and the reasons noted for issuing the opinion are our lack of revenues and capital.
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This is the current corporate organization:
Company’s Thoroughbreds
|
Name |
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DOB/Sex |
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Division |
|
In Foal |
|
2018 Breeding Season |
|
Milania |
|
2009/Mare |
|
Breeding |
|
No |
|
Curlin |
|
Sweet Dreams |
|
2012/Mare |
|
Breeding |
|
Yes to Tapit |
|
Tapit |
|
Lazy Susan |
|
2014/Mare |
|
Breeding |
|
Yes to Quality Road |
|
Tapit |
|
Meta Mu |
|
2012/Mare |
|
Breeding |
|
Yes to American Pharoah |
|
TBD |
|
Sweet Congrats(1) |
|
2015/Filly |
|
Racing |
|
n/a |
|
n/a |
|
Well Hello(1) |
|
2015/Filly |
|
Racing |
|
n/a |
|
n/a |
__________
(1) The company owns a 30% stake in Sweet Congrats and Well Hello.
Breeding
The Company’s breeding division will consist of those thoroughbreds breed to be sold in private transactions or auctions. The Company is breeding in Kentucky. The Company expects that it will need to raise $2,000,000 to expand its breeding programs. The breeding programs consist of the Company acquiring broodmares and paying stud fees to farms who own the studs. The breeding season typically runs from February through May. Under the rules of racing, every foal (a baby thoroughbred) is given a birthday of January 1 of the year of its birth regardless of its actual date of birth. The Company will generate revenue from its breeding division through the sale of the foals and purse winnings from the foals the Company keeps.
The Company currently owns 4 broodmares and sold its first foals at the Keeneland Sale in November 2017. However, we are dependent on raising the necessary capital to begin our breeding program. As a result, we may have to delay the date we begin if we are unable to raise sufficient capital. Any delay in raising the capital may cause significant delays in beginning the program since the breeding season only runs from February through May.
The Company is dependent on obtaining the necessary financing to acquire broodmares and pay the necessary stud fees for its breeding division. The Company will acquire begin the breeding program as our capital position permit. Although the Company expects it needs $2,000,000 to acquire 2-4 additional broodmares for this division, we will begin acquiring broodmares as soon as our capital position allows the Company to do so. As such, the faster the Company can raise the necessary capital the quick we can acquire the broodmares and pay for the stud fees.
Revenue from Breeding Division
The Company generates revenue from the sale of the foals from the Company’s broodmares. The company sells the foals as weanlings but may they be sold as yearlings (1-year-old) or as 2 years old. The Company sells through auctions but may sell through a private party transaction. The Company sold its first two foals at the November Keeneland for $330,000.
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Racing
Racing it broken into two levels: Allowance/Stake and Claiming.
Allowance/Stakes Level Racing
Stakes and allowance races are races in which the horses are not for sale. Allowance races are a race other than claiming for which the racing secretary drafts certain conditions. The racing secretary for each track drafts certain conditions that a horse must satisfy to be entered into allowance races at the track. These conditions are set forth in a “condition book” that is generally prepared every two weeks. Stakes races are the top level races. Stakes races are the top level races and normally have a nomination and entry fee to be entered into the race. Additionally, there may be a starting fee. A starting fee is the final fee to be paid when the horse is declared a starter after the starting gate opens. The purse money is significantly higher in allowance and stakes level races. Allowance and stakes races may only account for 1-3 races per day at a track instead of the 5-9 claiming races a day at a track. The higher the level in racing the fewer the number of races there are on an average day.
The Company generates revenue from its allowance/stakes division from the purse winnings of the thoroughbred. The Company does not expect to sell these thoroughbreds. The Company expects that a thoroughbred will begin to generate revenue from purse winnings within 45-60 days from acquiring the thoroughbred. The Company further expects that it will continue to receive revenue from the thoroughbred every 45-60 days from additional purse winnings. The Company is currently not generating revenue from this division. The 45-60 day period between races affects the company’s cash flow by not providing monthly revenue from the particular thoroughbred; however, the higher purse values are expected to offset this.
Claiming
A claiming race is one in which all horses entered are eligible to be purchased by a licensed owner or indirectly through a trainer for the specified claiming price. For example, in a $32,000 Claiming race all the horses are for sale for the purchase price of $32,000 plus applicable taxes. The procedure for a claiming race is as follows: the trainer puts a claim in for the horse prior to the race. Immediately upon the start of the race the horse is considered sold to the new owner, however, the previous owner maintains any purse winnings from that race. If two or more owners/trainers put a claim in on a horse than a “shake” occurs to determine who has purchased the horse. A shake is when each claiming owner is assigned a number. Then a racing official draws a number at random and the owner with corresponding number has purchased the horse. Claiming races account for up to 80% of all thoroughbred races on a given day. Allowance and stakes thoroughbred typically only race every 30 days and may race as often as every two weeks.
The Company generates revenue from its Claiming Division in two ways: (1) purse winnings and (2) sale of a thoroughbred. The Company expects that a thoroughbred will begin to generate revenue from purse winnings within 30 days from acquiring the thoroughbred. The Company further expects that it will continue to receive revenue from the thoroughbred every 30 days from additional purse winnings. The Company will also generate revenue if our thoroughbred is claimed by another stable. The Company expects that most thoroughbreds in its claiming division will be claimed from the Company within 12 months from the date we acquired the thoroughbred.
Timing Between Races
Allowance and stakes thoroughbred typically only race every 45-60 days and may travel outside California to race. Claiming thoroughbreds typically only race every 30 days and may race as often as every two weeks. Claimers race more often than allowance/stakes thoroughbreds due mainly to the smaller purses in claiming races. The expenses related to training a claiming thoroughbred versus an allowance or stakes thoroughbred are approximately the same amount. However, allowance/stakes thoroughbred’s purse typically will range from $50,000 to $5,000,000 while claiming purses typically range from $10,000 to $32,000. The higher the average purse money in races that a thoroughbred runs in will allow the Company to provide more time for that thoroughbred to rest in between races since the revenue generated is higher from that thoroughbred.
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Eligibility to Enter Races
Eligibility to enter a horse into a particular race is determined by the conditions applicable to the race as set forth on the racing card established by the racing secretary. Conditions take into account such factors as age, sex, winnings (including the number of races won, if any, the most recent win(s) and dollar amount of winnings) and state of birth. For claiming races, the claiming price represents, effectively, an additional racing condition because only horses with values consistent with the claiming price will be entered by their owners. We believe that there will be ample opportunities for our horses to race and we do not believe an absence of racing opportunities will limit our revenues.
Purse Money Distribution
In both allowance/stakes level races and claiming races, purse earnings received by the owner are typically net of commissions. Commissions are customarily 10% of purse earnings for the jockey, if the horse places in first, second or third, and 10% of purse earnings for the trainer and barn staff, if the horse places in first, second, third, fourth or fifth. Otherwise, commissions for the jockey, trainer and barn staff are a flat fee of typically $250. The purse winnings are typically distributed as follows: 1st: 60%; 2nd: 20%; 3rd: 12%; 4th: 6%; 5th: 2%. The rest of the field receives $250 per start.
Training and Development of Horses
The Company’s training program will not differ significantly between the claiming division and allowance/stakes division. Each thoroughbred will follow essentially the same training program with the difference being in what distances the horses is expected to race. The main difference between a claiming thoroughbred and an allowance/stakes is essentially the speed and talent of the thoroughbred. As any athlete, some thoroughbreds are blessed with more natural talent than others.
The trainer is the most significant person on the racing team with respect to the development of a thoroughbred. The primary responsibilities of a trainer are the development of the racing abilities of a thoroughbred and the execution of a racing strategy for generating racing revenues. In some cases, the strategy for a horse considered to have early racing potential may be to have it entered into races quickly to take advantage of its early maturation. In other cases, horses may be entered into races more selectively in order to develop them at a more conservative pace. The trainer and our chief executive officer will select the races into which each horse is to be entered at the racetrack.
Once a thoroughbred has been entered in a race, a period of a few weeks to two months may elapse before the thoroughbred has recovered and is ready to race again. The factors relating to the length between races include the endurance, shape and health of the thoroughbred, the skill level and competition experience of the other thoroughbreds in the race and purse money typically ran by the thoroughbred. Trainers typically use these factors to determine where and when to race the thoroughbreds they are training in an effort to create attractive opportunities for the thoroughbred to win and generate revenues. Between races, thoroughbreds are generally ridden or walked every day. Training typically includes jogging, cantering or galloping most days and running (which is referred to as a workout or “fast work”) every seven days that it does not race. A workout consists of a timed run from three to five furlongs (one furlong equals 1/8 of a mile) and simulates a race for the thoroughbred.
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Another key consideration in racing development is the selection of a jockey. Generally speaking, the trainer is responsible for jockey selection and the stature of the trainer is therefore important from the perspective of jockey selection as well. However, if our horses become eligible for and are entered into a Grade I stakes race, the jockey will be selected or approved by our chief executive officer. In each race, a jockey weight is assigned to each horse and that horse’s jockey must weigh in at the required weight in order for the horse to start (or within a number of pounds over the specified weight if a range is permitted by the racing secretary). Jockey weights are assigned based on a variety of factors that may include the horse’s age and prior win level. The jockey is generally entitled to a commission equal to 10% of the purse earning of a horse ridden by the jockey, if the horse places in first, second or third. The jockey is also entitled to a modest (for example, $100) flat fee that must be paid from the horseman’s account with the racing track.
Overview of the Horse Racing Industry in the U.S.
During 2015, there were 52,771 active thoroughbred racehorses in the United State. Those horses raced in a total of 38,941 thoroughbred races and earned approximately $1.1 billion in purse winnings. Thoroughbred horse races in 2010 attracting millions of spectators and aggregate handle of more than $10.7 billion at tracks and at off-site locations. The US Gross Domestic Product for thoroughbred racing, breeding, and related activities alone is over $39 billion, with the total horse industry contributing over $101 billion.
Pari-mutuel wagering is the prevalent form of wagering on horse racing events. Pari-mutuel wagering is a form of wagering in which wagers on horse races are aggregated in a commingled pool of wagers, called a mutual pool, and the payoff to winning customers is determined by both the total dollar amount of wagers in the mutual pool and the allocation of those dollars among the various kinds of bets. Unlike casino gaming, the customers bet against each other, and not against the operator, and therefore the operator bears no risk of loss with respect to wagering conducted except in the case of minimum payout bets. The pari-mutuel operator retains a pre-determined percentage of the total amount wagered, called the takeout, on each event, regardless of the outcome of the wagering event, and the remaining balance of the mutual pool is distributed to the winning customers. Of the percentage retained by the pari-mutuel operator, a portion is paid to the horse owners in the form of purses or winnings, which encourage the horse owners and their trainers to enter their horses in a track’s races. Pari-mutuel wagering on horse racing is the largest form of pari-mutuel wagering, and it is currently authorized in over 40 states of the United States and all provinces of Canada.
Over the past twenty years, live attendance at horse racetracks in the U.S. and Canada has declined substantially. The total number of races declined from 81,279 in 1990 to 52,771 in 2010. Pari-mutuel wagering on thoroughbred horseracing has declined by approximately 24% from a peak of $15.7 billion in 2003 to $11.9 billion in 2010. U.S. and Canadian purses, which represent the amount of available winnings in United States and Canadian thoroughbred horse races (including monies not won and returned to state breeder and other funds), have shown a more modest decrease, declining by about 4.8% over the same period, as illustrated in the table below:
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The number of race days has also declined significantly. Since 1999, more than 25% of races, excluding major racing events such as the Kentucky Derby, the Belmont Stakes, the Preakness Stakes and the Breeder’s Cup and other racing events held on the same day, have been inadequately funded, meaning that the live handle contribution from all sources to the tracks and purse account was less than the purse paid out to horsemen, and approximately 49% of race days have not generated sufficient revenue to cover purses and the cost of running the day. Major racing events, however, continue to draw large crowds, earn high television ratings and attract substantial total handle.
|
Year |
|
|
Total US Foal Crop |
|
|
Number Of US Races |
|
|
Total US Purses |
|
|
Total US Starters |
|
|
Avg. Purse Per Starter ($) |
|
|
Avg. Purse Per Race ($) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
1988 |
|
|
|
45,258 |
|
|
|
71,014 |
|
|
|
676,797,744 |
|
|
|
83,021 |
|
|
|
8,152 |
|
|
|
9,530 |
|
|
|
1989 |
|
|
|
44,250 |
|
|
|
74,071 |
|
|
|
706,940,245 |
|
|
|
83,893 |
|
|
|
8,427 |
|
|
|
9,544 |
|
|
|
1990 |
|
|
|
40,333 |
|
|
|
72,664 |
|
|
|
714,480,213 |
|
|
|
82,314 |
|
|
|
8,680 |
|
|
|
9,833 |
|
|
|
1991 |
|
|
|
38,151 |
|
|
|
71,689 |
|
|
|
698,654,071 |
|
|
|
80,238 |
|
|
|
8,707 |
|
|
|
9,746 |
|
|
|
1992 |
|
|
|
35,051 |
|
|
|
70,393 |
|
|
|
709,565,534 |
|
|
|
76,943 |
|
|
|
9,222 |
|
|
|
10,080 |
|
|
|
1993 |
|
|
|
33,822 |
|
|
|
65,354 |
|
|
|
692,123,219 |
|
|
|
72,567 |
|
|
|
9,538 |
|
|
|
10,590 |
|
|
|
1994 |
|
|
|
32,118 |
|
|
|
64,118 |
|
|
|
718,439,110 |
|
|
|
69,583 |
|
|
|
10,325 |
|
|
|
11,205 |
|
|
|
1995 |
|
|
|
31,884 |
|
|
|
61,969 |
|
|
|
761,582,751 |
|
|
|
67,021 |
|
|
|
11,363 |
|
|
|
12,290 |
|
|
|
1996 |
|
|
|
32,243 |
|
|
|
58,259 |
|
|
|
792,704,873 |
|
|
|
65,108 |
|
|
|
12,175 |
|
|
|
13,607 |
|
|
|
1997 |
|
|
|
32,119 |
|
|
|
57,832 |
|
|
|
851,462,820 |
|
|
|
64,099 |
|
|
|
13,284 |
|
|
|
14,723 |
|
|
|
1998 |
|
|
|
32,947 |
|
|
|
55,894 |
|
|
|
904,014,631 |
|
|
|
63,798 |
|
|
|
14,170 |
|
|
|
16,174 |
|
|
|
1999 |
|
|
|
33,844 |
|
|
|
54,644 |
|
|
|
962,853,553 |
|
|
|
63,547 |
|
|
|
15,152 |
|
|
|
17,620 |
|
|
|
2000 |
|
|
|
34,728 |
|
|
|
55,486 |
|
|
|
1,030,879,290 |
|
|
|
64,443 |
|
|
|
15,997 |
|
|
|
18,579 |
|
|
|
2001 |
|
|
|
34,721 |
|
|
|
55,127 |
|
|
|
1,067,490,193 |
|
|
|
65,829 |
|
|
|
16,216 |
|
|
|
19,364 |
|
|
|
2002 |
|
|
|
32,986 |
|
|
|
54,304 |
|
|
|
1,074,247,738 |
|
|
|
67,009 |
|
|
|
16,031 |
|
|
|
19,782 |
|
|
|
2003 |
|
|
|
33,976 |
|
|
|
53,503 |
|
|
|
1,055,496,849 |
|
|
|
68,249 |
|
|
|
15,465 |
|
|
|
19,728 |
|
|
|
2004 |
|
|
|
34,800 |
|
|
|
53,595 |
|
|
|
1,092,085,465 |
|
|
|
68,569 |
|
|
|
15,927 |
|
|
|
20,377 |
|
|
|
2005 |
|
|
|
35,050 |
|
|
|
52,257 |
|
|
|
1,085,005,415 |
|
|
|
66,903 |
|
|
|
16,218 |
|
|
|
20,763 |
|
|
|
2006 |
|
|
|
34,905 |
|
|
|
51,668 |
|
|
|
1,120,350,012 |
|
|
|
66,733 |
|
|
|
16,789 |
|
|
|
21,684 |
|
|
|
2007 |
|
|
|
34,357 |
|
|
|
51,304 |
|
|
|
1,180,587,881 |
|
|
|
67,261 |
|
|
|
17,552 |
|
|
|
23,012 |
|
|
|
2008 |
|
|
|
32,330 |
|
|
|
50,119 |
|
|
|
1,165,042,722 |
|
|
|
67,061 |
|
|
|
17,373 |
|
|
|
23,246 |
|
|
|
2009 |
|
|
|
29,609 |
|
|
|
49,368 |
|
|
|
1,098,194,699 |
|
|
|
66,104 |
|
|
|
16,613 |
|
|
|
22,245 |
|
|
|
2010 |
|
|
|
25,948 |
|
|
|
46,379 |
|
|
|
1,031,317,175 |
|
|
|
62,994 |
|
|
|
16,372 |
|
|
|
22,237 |
|
|
|
2011 |
|
|
|
22,644 |
|
|
|
45,418 |
|
|
|
1,061,210,889 |
|
|
|
59,896 |
|
|
|
17,718 |
|
|
|
23,365 |
|
|
|
2012 |
|
|
|
21,440 |
|
|
|
45,086 |
|
|
|
1,127,775,188 |
|
|
|
57,331 |
|
|
|
19,671 |
|
|
|
25,014 |
|
|
|
2013 |
|
|
|
21,275 | * |
|
|
43,139 |
|
|
|
1,127,210,117 |
|
|
|
54,187 |
|
|
|
20,802 |
|
|
|
26,130 |
|
|
|
2014 |
|
|
|
20,300 | * |
|
|
41,277 |
|
|
|
1,111,715,735 |
|
|
|
51,695 |
|
|
|
21,505 |
|
|
|
26,933 |
|
|
|
2015 |
|
|
|
20,300 | * |
|
|
38,941 |
|
|
|
1,093,667,288 |
|
|
|
49,960 |
|
|
|
21,891 |
|
|
|
28,085 |
|
|
________
*Estimated Numbers
Source: Equibase, LLC
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Size of Thoroughbred Business
The US Gross Domestic Product for thoroughbred racing, breeding, and related activities alone is over $39 billion, with the total horse industry contributing over $101 billion. There are an estimated 50,000 thoroughbred races each year attracting 60 million spectators and bets of more than $13 billion at the tracks and at off-site locations.
Deciding on Horse
When deciding on acquiring the horse the main pieces of information the Company relies on are breeding, past performance charts and race replays.
When deciding to claim a horse, the Company relies mostly on the thoroughbred’s past performance. This is because unlike a private sell or an auction, the Company cannot have a veterinarian check the horse prior to acquiring the thoroughbred. The past performance will provide evidence to the soundness of the thoroughbred, the thoroughbred’s willingness and ability to win and the length of race and turf types that the thoroughbred prefers. The Company’s officers believe that the past performance indicates the level of competition the thoroughbred can win at and therefore it does indicate its value. However, the past performance may not accurately predict the future performance of the thoroughbred. In addition, to the thoroughbreds past performance the Company reviews the thoroughbred’s pedigree, conformation, and dosage rating of the thoroughbred. Once the Company has made initial decisions to acquire a thoroughbred, we review race replays and/or watch the thoroughbred gallop in morning workouts. During this phase we review athleticism to assist in determining whether to claim a particular horse. The qualities that make up the athleticism of a horse include its physical proportionality, its temperament and its balance. Unlike a private transaction or auction the Company cannot have a vet check out for the thoroughbred for soundness issues prior to the company acquiring the thoroughbred. The Company relies on the past performance, race replays and watching morning workouts and/or gallops to determine the soundness of a particular thoroughbred it intends to acquire. The Company also will have a veterinarian check the thoroughbred prior to acquiring the thoroughbred thereby provide the Company with a comprehensive report on the health and condition of the thoroughbred. At an auction, the thoroughbred typically has not raced before and therefore does not have any past performances to rely on. Therefore, the Company relies on ancestry, or bloodline, and the confirmation of the thoroughbred.
Emerging Growth Company Status
We are an “emerging growth company,” as defined in the JOBS Act. For as long as we are an “emerging growth company,” we may 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(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding advisory “say-on-pay” votes on executive compensation and shareholder advisory votes on golden parachute compensation.
Under the JOBS Act, we will remain an “emerging growth company” until the earliest of:
|
|
· | the last day of the fiscal year during which we have total annual gross revenues of $1 billion or more; |
|
|
· | the last day of the fiscal year following the fifth anniversary of the effective date of this registration statement; |
|
|
· | the date on which we have, during the previous three-year period, issued more than $1 billion in non- convertible debt; and |
|
|
· | the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, or the Exchange Act. |
We will qualify as a large accelerated filer as of the first day of the first fiscal year after we have (i) more than $700 million in outstanding common equity held by our non-affiliates and (ii) been public for at least 12 months. The value of our outstanding common equity will be measured each year on the last day of our second fiscal quarter.
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The Section 107 of the JOBS Act provides that we may elect to utilize the extended transition period for complying with new or revised accounting standards and such election is irrevocable if made. As such, we have made the election to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. Please refer to a discussion on page 13 under “Risk Factors” of the effect on our financial statements of such election.
Going Concern
Our auditor has expressed substantial doubt about our ability to continue as a going concern. As discussed in Note 1 to the September 30, 2017 financial statements, the Company has suffered losses and has experienced negative cash flows from operations, which raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to those matters are also described in Note 2 of the September 30, 2017 financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Competition
The thoroughbred industry is highly competitive. Our competitors and potential competitors include major stables companies and individuals with high net worth’s. Most of our competitors have greater financial, personnel and other resources than we have. Accordingly, a high degree of competition in these areas will continue
Governmental Regulation
Horse racing is governed by the individual states through which mainly focus on regulating the pari-mutual wagering in horse racing. In California, horse racing is regulated by the California Horse Racing Board and governed by the Business and Professions Code of California. The Company’s California owner’s license number is 321870 and it expires in December 2018. The Company doesn’t require a license to breed in Kentucy. Licenses are required to race horses.
Employees
There are no persons other than our executive officers who are expected by us to make a significant contribution to our business.
Proprietary Rights
We do not have any proprietary rights.
Reports to Security Holders
We will and will continue to make our financial information equally available to any interested parties or investors through compliance with the disclosure rules of Regulation S-K for a smaller reporting company under the Securities Exchange Act. In addition, we will file Form 8-K and other proxy and information statements from time to time as required. The public may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room at 100 F Street NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.
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Item 8: Description of Property
As our office space needs are limited at the current time, we are currently located at 1624 Market St Suite 202-90862 Denver, CO 80202. Which is for mailing purposes only. We pay $50 per month for space in Colorado. The horses for the breeding are maintain at a 3rd party farm in Kentucky and we pay a day rate for the horses. The horses in the racing division are housed by the trainer which is included in the monthly fee paid to the trainer.
Item 9: Management’s Decision and Analysis of Financial Condition and Results of Operation
You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes and other financial information included elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that reflect our current views with respect to future events and financial performance, which involve risks and uncertainties. Forward-looking statements are often identified by words like: “believe”, “expect”, “estimate”, “anticipate”, “intend”, “project” and similar expressions, or words that, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this prospectus. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions. You should review the “Risk Factors” section of this prospectus for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Our financial statements are stated in United States Dollars (USD or US$) 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.
Results of Operations
General Overview
We were incorporated in the state of Nevada as Cascade Springs Ltd. on January 19, 2010. In 2012, we amended our Articles of Incorporation to change our name to Colorado Gold Mines, Inc. On June 18, 2014, we changed our name to Buscar Oil, Inc. On May 19, 2015, we changed our name to Buscar Company. Our primary business is the breeding and selling of thoroughbreds.
There is limited historical financial information about us upon which to base an evaluation of our performance. We have not generated revenues from our operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including the financial risks associated with the limited capital resources currently available to us for the implementation of our business strategies. (See “Risk Factors”). To become profitable and competitive, we must develop the business plan and execute the plan. Our management will attempt to secure financing through various means including borrowing and investment from institutions and private individuals.
Going Concern
These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these unaudited condensed consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At September 30, 2017, the Company had not yet achieved profitable operations, has accumulated losses of $18,967,460 since its inception and expects to incur further losses in the development of its business, all of which raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on terms acceptable to the Company.
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| Table of Contents |
Thoroughbreds
The Company’s main focus is breeding thoroughbreds in Kentucky. The Company currently has three mares in Kentucky and two foals. The Company has entered the foals into the November Keeneland Auction. Two of the company’s mares are pregnant and their foals will be sold in 2018 at the Keeneland November sale.
Current Thoroughbred Roster
Breeding Division
|
Name |
|
Type |
|
Location |
|
Pregnant |
|
2018 Breeding Season |
|
Milania |
|
Brood Mare |
|
Kentucky |
|
No |
|
Curlin |
|
Sweet Dreams |
|
Brood Mare |
|
Kentucky |
|
Yes to Tapit |
|
Tapit |
|
Meta Mu |
|
Brood Mare |
|
Kentucky |
|
Yes to American Pharoah |
|
Inquiring into Battle of Midway |
|
Lazy Susan |
|
Brood Mare |
|
Kentucky |
|
Yes to Quality Roads |
|
Tapit |
Racing Division
|
Name |
|
Location |
|
Trainer |
|
Sweet Congrats |
|
California |
|
Blacker, D |
|
Well Hello |
|
California |
|
Blacker, D |
Results of Operations
The following summary of our operations should be read in conjunction with our unaudited financial statements for the three and six months ended September 30, 2017 and 2016.
Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016
|
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2017 |
|
|
2016 |
|
|
Change |
|
|
% |
|
||||
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
General and administrative |
|
$ | 133,511 |
|
|
$ | 1,256,223 |
|
|
$ | (1,122,712 | ) |
|
|
(89 | )% |
|
Total operating expenses |
|
|
133,511 |
|
|
|
1,256,223 |
|
|
|
(1,122,712 | ) |
|
|
(89 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(133,511 | ) |
|
|
(1,256,223 | ) |
|
|
(1,122,712 | ) |
|
|
(89 | )% |
|
Other expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(133,511 | ) |
|
|
(1,256,223 | ) |
|
|
(1,122,712 | ) |
|
|
(89 | )% |
|
Net loss |
|
$ | (133,511 | ) |
|
$ | (1,256,223 | ) |
|
$ | (1,122,712 | ) |
|
|
(89 | )% |
We have not generated any revenues as of September 30, 2017.
Operating expense decreased to $133,511 from $1,256,223 for the three months ended September 30, 2017 and 2016, respectively. The decrease in operating expenses is primarily due to a decrease in management and consulting fees.
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| Table of Contents |
We incurred a net loss of $133,511 and $1,256,223 for the three months ended September 30, 2017 and September 30, 2016, respectively.
Six Months Ended September 30, 2017 Compared to Six Months Ended September 30, 2016
|
|
|
Six Months Ended September 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2017 |
|
|
2016 |
|
|
Change |
|
|
% |
|
||||
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
General and administrative |
|
$ | 293,772 |
|
|
$ | 1,795,339 |
|
|
$ | (1,501,567 | ) |
|
|
(84 | )% |
|
Impairment loss |
|
|
333,000 |
|
|
|
- |
|
|
|
333,000 |
|
|
|
- |
|
|
Total operating expenses |
|
|
626,772 |
|
|
|
1,795,339 |
|
|
|
(1,168,567 | ) |
|
|
(65 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(626,772 | ) |
|
|
(1,795,339 | ) |
|
|
1,168,567 |
|
|
|
(65 | )% |
|
Other expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt settlement |
|
|
300,000 |
|
|
|
- |
|
|
|
300,000 |
|
|
|
- |
|
|
Loss before income taxes |
|
|
(326,772 | ) |
|
|
(1,795,339 | ) |
|
|
1,468,567 |
|
|
|
(82 | )% |
|
Net loss |
|
$ | (326,772 | ) |
|
$ | (1,795,339 | ) |
|
$ | 1,468,567 |
|
|
|
(82 | )% |
Operating expenses decreased to $626,772 from $1,795,339 for the six months ended September 30, 2017 and 2016, respectively. The decrease in operating expenses is primarily due to a decrease in management and consulting fees.
We incurred a net loss of $326,772 and $1,795,339 for the six months ended September 30, 2017 and September 30, 2016, respectively.
Results of Operations and Financial Condition for the years ended March 31, 2017 and 2016
|
|
|
Years Ended March 31, |
|
|
Changes |
|
||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
Amount |
|
|
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
$ | - |
|
|
$ | - |
|
|
$ | - |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
3,372,540 |
|
|
|
402,656 |
|
|
|
2,969,884 |
|
|
|
738 | % |
|
Total expenses |
|
|
3,372,540 |
|
|
|
402,656 |
|
|
|
2,969,884 |
|
|
|
738 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(3,372,540 | ) |
|
|
(402,656 | ) |
|
|
(2,969,884 | ) |
|
|
738 | % |
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt settlement |
|
|
- |
|
|
|
(122,541 | ) |
|
|
122,541 |
|
|
(100 |
%) |
|
|
Total other expense |
|
|
- |
|
|
|
(122,541 | ) |
|
|
122,541 |
|
|
(100 |
%) |
|
|
Loss before income taxes |
|
|
(3,372,540 | ) |
|
|
(525,197 | ) |
|
|
(2,847,343 | ) |
|
|
542 | % |
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net loss |
|
$ | (3,372,540 | ) |
|
$ | (525,197 | ) |
|
$ | (2,847,343 | ) |
|
|
542 | % |
We have not generated any revenues as of March 31, 2017.
The increase in operating expenses by $2,969,884 during the year ended 2017, is primarily due to the increase in management and consulting fees that resulted from stock issuances, increased legal and professional fees and maintenance fees for our thoroughbreds.
There is no assurance that we will ever be profitable. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should we be unable to continue as a going concern.
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Liquidity and Capital Resources
|
|
|
September 30, |
|
|
March 31, |
|
|
|
|
|
|
|
||||
|
|
|
2017 |
|
|
2017 |
|
|
Change |
|
|
% |
|
||||
|
Cash |
|
$ | 489,196 |
|
|
$ | 286,527 |
|
|
$ | 202,669 |
|
|
|
71 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
$ | 489,196 |
|
|
$ | 332,291 |
|
|
$ | 156,905 |
|
|
|
47 | % |
|
Current Liabilities |
|
|
222,045 |
|
|
|
207,560 |
|
|
|
14,485 |
|
|
|
7 | % |
|
Working Deficiency |
|
$ | 267,151 |
|
|
$ | 124,731 |
|
|
$ | 142,420 |
|
|
|
114 | % |
As of September 30, 2017, and March 31, 2017, we had cash of $489,196 and $286,527, respectively. Our working capital increased 142,420, as of September 30, 2017, primarily due to an increase in cash of $202,669. Our cash position is insufficient and as such we plan to raise additional debt and equity financing to meet our obligations as they become due.
Our working capital increased as of March 31, 2017 primarily due to the increase in cash.
|
|
|
Six Months Ended September 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2017 |
|
|
2016 |
|
|
Change |
|
|
% |
|
||||
|
Cash Flows provided by (used in) Operating Activities |
|
$ | 202,669 |
|
|
$ | (39,051 | ) |
|
$ | 241,720 |
|
|
|
(619 | )% |
|
Cash Flows used in Investing Activities |
|
|
- |
|
|
|
(104,858 | ) |
|
|
104,858 |
|
|
|
(100 | )% |
|
Cash Flows from Financing Activities |
|
|
- |
|
|
|
690,866 |
|
|
|
(690,866 | ) |
|
|
(100 | )% |
|
Net Increase in Cash During the Year |
|
$ | 202,669 |
|
|
$ | 546,957 |
|
|
$ | (344,288 | ) |
|
|
(63 | )% |
As of September 30, 2017, and March 31, 2017, we had cash of $489,196 and $286,527, respectively. Our working capital increased as of September 30, 2017 primarily due to an increase in cash of $202,669. Our cash position is insufficient and as such we plan to raise additional debt and equity financing to meet our obligations as they become due.
During the six months ended September 30, 2017, cash provided by operating activities was $202,669. This was primarily the result of our net loss of $326,772, insurance claim of $300,000, offset by stock based compensation of $32,010, depreciation of $104,182, and an impairment loss of $333,000 and a decrease in prepaid expenses of $45,764, other receivable of $300,000 and an increase in accrued liabilities of $14,485. During the six months ended September 30, 2016, cash used in operating activities was $39,051. This was primarily the result of our net loss of $1,795,339 and a decrease in accrued liability of $5,000, offset by stock based compensation of $1,753,500 and depreciation of $7,788.
During the six months ended September 30, 2017, cash used in investing activities was $0. During the six months ended September 30, 2016, cash used in investing activities was $104,858. The company purchased minority interest in two horses and majority interest in two horses, for a total payment of $104,858.
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| Table of Contents |
During the six months ended September 30, 2017, cash provided by financing activities amounted to $0. During the six months ended September 30, 2016, cash provided by financing activities amounted to $690,866. Our company received cash from issuance of common stock of $595,000 and loans from related party of $191,796 and repaid loans from a related party of $95,930.
|
|
|
Year Ended March 31, |
|
|
|
|
||||||
|
|
|
2017 |
|
|
2016 |
|
|
Change |
|
|||
|
Cash Flows used in Operating Activities |
|
$ | (619,181 | )) |
|
$ | (40,171 | ) |
|
$ | (579,012 | ) |
|
Cash Flows used in Investing Activities |
|
|
(1,035,632 | ) |
|
|
- |
|
|
|
(1,035,630 | ) |
|
Cash Flows from Financing Activities |
|
|
1,941,340 |
|
|
|
40,171 |
|
|
|
1,901,169 |
|
|
Net Increase (Decrease) in Cash During the Year |
|
$ | 286,527 |
|
|
$ | - |
|
|
$ | 286,527 |
|
During the year ended March 31, 2017, cash used in operating activities was $619,181. This was primarily the result of our net loss of $3,372,540, reduced by stock based compensation of $2,686,000, depreciation of $94,189, and increased from an increase in prepaid expenses of $45,764 and decreased from an increase accounts payable and accrued liabilities of $18,934.
During the year ended March 31, 2016, cash used in operating activities was $40,171. This was primarily the result of our net loss of $525,197, offset by stock based compensation of $357,000, loss on debt settlement of $122,541, and an increase in accounts payable and accrued liabilities of $5,485.
During the year ended March 31, 2017, cash used in investing activities was for the purchase of thoroughbreds.
During the year ended March 31, 2017, cash provided by financing activities was $1,941,340 from the issuance of 1,760,643 shares of common stock for $1,981,000, reduced $26,800 for net repayments to a related party, reduced $7,500 for repayments on a note payable, and reduced by $5,360 for the payment of a dividend.
We plan to raise additional debt and equity financing to meet our obligations as they become due. Our directors and officers has made no commitments, written or oral, with respect to providing a source of liquidity in the form of cash advances, loans and/or financial guarantees.
If the Company is unable to raise the funds partially through this offering, the Company will seek alternative financing through means such as borrowings from institutions or private individuals. There can be no assurance that the Company will be able to keep costs from being more than these estimated amounts or that the Company will be able to raise such funds. Even if we sell all shares offered through this Offering Circular, we expect that the Company will seek additional financing in the future. However, the Company may not be able to obtain additional capital or generate sufficient revenues to fund our operations. If we are unsuccessful at raising sufficient funds, for whatever reason, to fund our operations, the Company may be forced to seek a buyer for our business or another entity with which we could create a joint venture. If all of these alternatives fail, we expect that the Company will be required to seek protection from creditors under applicable bankruptcy laws.
Recent Federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted in the adoption of various corporate governance measures designed to promote the integrity of the corporate management and the securities markets. Some of these measures have been adopted in response to legal requirements. Others have been adopted by companies in response to the requirements of national securities exchanges, such as the NYSE or The NASDAQ Stock Market, on which their securities are listed. Among the corporate governance measures that are required under the rules of national securities exchanges are those that address board of directors’ independence, audit committee oversight, and the adoption of a code of ethics. Our Board of Directors is comprised of one individual who is also our executive officer. Our executive officer makes decisions on all significant corporate matters such as the approval of terms of the compensation of our executive officer and the oversight of the accounting functions.
Although the Company has adopted a Code of Ethics and Business Conduct the Company has not yet adopted any of these other corporate governance measures and, since our securities are not yet listed on a national securities exchange, the Company is not required to do so. The Company has not adopted corporate governance measures such as an audit or other independent committees of our board of directors as we presently do not have any independent directors. If we expand our board membership in future periods to include additional independent directors, the Company may seek to establish an audit and other committees of our board of directors. It is possible that if our Board of Directors included independent directors and if we were to adopt some or all of these corporate governance measures, stockholders would benefit from somewhat greater assurances that internal corporate decisions were being made by disinterested directors and that policies had been implemented to define responsible conduct. For example, in the absence of audit, nominating and compensation committees comprised of at least a majority of independent directors, decisions concerning matters such as compensation packages to our senior officer and recommendations for director nominees may be made by a majority of directors who have an interest in the outcome of the matters being decided. Prospective investors should bear in mind our current lack of corporate governance measures in formulating their investment decisions.
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Trends and Key Factors Affecting Our Performance
The core elements of our growth strategy include acquisition of mares at the various auctions throughout the year. We plan to invest significant resources to accomplish these goals, and we anticipate that our operating expenses will continue to increase for the foreseeable future, particularly acquisition of mares, stud fees, and overhead. These investments are intended to contribute to our long-term growth; however, they may affect our short-term profitability.
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
Inflation
The effect of inflation on our revenues and operating results has not been significant.
Critical Accounting Policies
Our financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. We have identified below the critical accounting policies which are assumptions made by management about matters that are highly uncertain and that are of critical importance and have a material impact on our financial statements. Management believes that the critical accounting policies and estimates discussed below involve the most complex management judgments due to the sensitivity of the methods and assumptions necessary in determining the related asset, liability, revenue and expense amounts. Specific risks associated with these critical accounting policies are discussed throughout this MD&A, where such policies have a material effect on reported and expected financial results.
A complete listing of our significant policies is included in the notes to our financial statements.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Estimates are based on historical experience, management expectations for future performance, and other assumptions as appropriate. We re-evaluate estimates on an ongoing basis; therefore, actual results may vary from those estimates.
Financial Instruments
The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.
Thoroughbreds
The Company depreciates thoroughbreds via straight-line depreciation over its useful life of 3 years.
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The thoroughbreds are stated at the lower of cost or market value. The cost was deemed to be the best evidence of market value and the company’s thoroughbreds were therefore stated at cost. Costs of maintaining horses prior to maturity and entered into a race or disposition are capitalized as additional costs of the horse. When a horse is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of operations.
The company evaluates the recoverability of its Long-Term Assets in accordance with ASC topic 360, which requires recognition of impairments of long lived assets in the event an indication of impairment exists and the net book value of such assets exceeds the expected future value net cash flows attainable to such assets.
Cost of Development represent stud fee, boarding, training, blacksmith, veterinary and land use for the horses. These specific costs are capitalized until the horse reaches maturity.
Thoroughbred Revenue Recognition
The Company pursues opportunities to realize revenues from a principal activity: breeding the thoroughbreds. It is the Company’s policy that revenues and gains will be recognized in accordance with ASC Topic 605-10-25, “Revenue Recognition.” Under ASC Topic 605-10-25, revenue earning activities such as selling the horses and the Company has substantially accomplished all it must do to be entitled to the benefits represented by the revenue. Gains or losses from the sale of the horses are recognized when the horse is sold, and the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of operations.
Recent accounting pronouncements
For a discussion of recently issued and adopted accounting pronouncements, please see Note 2 to the interim and audited financial statements included elsewhere in this Form 1-A.
Item 10: Directors, Executive Officers and Significant Employees
The table below sets forth our directors and executive officers of as of the date of this Offering Circular.
|
Name (1) |
|
Position |
|
Age |
|
Term of Office |
|
Approximate Hours Per Week |
|
|
||||||||
|
Anastasia Shishova |
President, Chief Executive Officer, Chief Financial Officer and Director |
31 |
Inception to Present |
As required |
Anastasia Shishova, President, Chief Executive Officer, Chief Financial Officer and Director.
Ms. Shishova was appointed as our sole officer and director on June 19, 2015. Since 2012, Ms. Shishova has been involved in owning and racing thoroughbreds in California. Since June 2011, Ms. Shishova has worked as an independent marketing consultant for businesses. Ms. Shishova has a Master’s Degree in Marketing and a Bachelors Degree from Samara State University in Samara, Russia.
Compensation of Directors and Executive Officers
The Companies’ officers and director have received the annual salary listed below for the services rendered on behalf of the Company:
|
Name and Principal Position |
|
Year |
|
Salary |
|
|
Bonus |
|
|
Awards |
|
|
Compensation |
|
|
TOTAL |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Anastasia Shishova, |
|
2018 |
|
$ | 240,000 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
240,000 |
|
|
President, CEO, Director (1) |
|
2017 |
|
$ | 120,000 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
120,000 |
|
| 39 |
|
|
| Table of Contents |
Item 12: Security Ownership of Management and Certain Security Holders
The following table sets forth information regarding beneficial ownership of our common stock as of FEBRUARY 22, 2018 and as adjusted to reflect the sale of shares of our common stock offered by this Offering Circular, by:
|
|
· |
Each of our Directors and the named Executive Officers; |
|
|
· |
All of our Directors and Executive Officers as a group; and |
|
|
· |
Each person or group of affiliated persons known by us to be the beneficial owner of more than 10% of our outstanding shares of Common Stock |
|
|
· |
All other shareholders as a group |
Beneficial ownership and percentage ownership are determined in accordance with the rules of the Securities and Exchange Commission and includes voting or investment power with respect to shares of stock. This information does not necessarily indicate beneficial ownership for any other purpose.
The following table sets forth, as of the date of this filing, certain information concerning the beneficial ownership of our common stock by (i) each stockholder known by us to own beneficially five percent or more of our outstanding common stock; (ii) each director; (iii) each named executive officer; and (iv) all of our executive officers and directors as a group, and their percentage ownership and voting power.
Unless otherwise indicated below, to our knowledge, all persons named in the table have sole voting and investment power with respect to their shares of our common stock, except to the extent authority is shared by spouses under community property laws. Except as otherwise indicated in the table below, addresses of named beneficial owners are in care of the Company:
|
Name and Address |
|
Number of Shares |
|
|
Percent of Class |
|
||
|
|
|
|
|
|
|
|
||
|
Common Stock (1) |
|
|
|
|
|
|
||
|
Anastasia Shishova |
|
|
14,325,000 |
|
|
|
76 | % |
|
CEO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troy Grant (1) |
|
|
688 |
|
|
|
0.0 | % |
|
COO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Preferred Stock |
|
|
|
|
|
|
|
|
|
Troy Grant |
|
|
8,000,000 |
|
|
|
100 | % |
|
COO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series B Preferred Stock |
|
|
|
|
|
|
|
|
|
Anastasia Shishova |
|
|
9,965,000 |
|
|
|
100 | % |
|
CEO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other 5% Holders: |
|
|
|
|
|
|
|
|
|
None. |
|
|
|
|
|
|
|
|
| 40 |
|
|
| Table of Contents |
Item 13: Interest of Management and Others in Certain Transactions
Related Party Transactions
The Company’s officers and directors owns the majority of the issued and outstanding controlling shares of the Company. Consequently, this shareholder controls the operations of the Company and will have the ability to control all matters submitted to stockholders for approval, including, but not limited to:
|
|
· |
Election of the Board of Directors |
|
|
· |
Removal of any Directors |
|
|
· |
Amendments to the Company’s Articles of Incorporation or bylaws; |
|
|
· |
Adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination. |
Thus, our officers and directors will thus have control over the Company’s management and affairs. Accordingly, this ownership may have the effect of impeding a merger, consolidation, takeover or other business combination, or discouraging a potential acquirer from making a tender offer for the Common Stock.
As at March 31, 2015 a related party were owed $238,254, for funds from related parties for paying its accounting, consulting and legal fees. The amount due did not bear any interest and is due on demand. During the year ended March 31, 2016, the amounts were cancelled against the issuance for shares of common stock in the Company.
On August 1, 2014 the Company entered into an Executive Employment Agreement with Mr. Troy Grant. Starting on August 1, 2014, the Company shall pay Mr. Grant a base salary of $22,000 per month, full or part, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which may either be paid in stock or cash at the discretion of the Board. These agreements have been terminated and Mr. Grant received 325,000 shares of common stock, which included payment for the accrued salaries, bonus and rental expenses.
On August 1, 2014 the Company entered into an office rental agreement with Mr. Grant for 700 square feet of office space located at his residence in Nova Scotia, Canada. The Company shall occupy the Premises on a month-to-month basis for $500 per month. Rent shall accrue from August 1, 2014 until July 31, 2015, and on such date, the Tenant shall pay owner the sum outstanding ($500 monthly) for all accrued rents. $4,000 has been expensed to date. These agreements have been terminated and Mr. Grant received 325,000 shares of common stock, which included payment for the accrued salaries, bonus and rental expenses.
On March 21, 2016, the Company issued 3,750 shares of common stock to a consultant, who is married to our CEO, with a fair value of $225,000 for consulting services. Consultant is being retained to assist the Company in acquiring and locating thoroughbreds to acquire for its stable and to perform any and all duties as requested by the Company’s CEO. Additionally, Consultant shall provide use of his thoroughbred to obtain Buscar Stables license in California. This contract shall expire on April 30, 2016.
As of March 31, 2017 and 2016, the Company had due to related party of $0 and $26,800, respectively.
In July 2016, the Company entered into an employment agreement with our CEO. The agreement is deferred until November 2017. The material terms of the PSA are as follows:
Term: 10 Years
Salary: $120,000 ($240,000 beginning December 1, 2018)
Stock Awards: 3,000,000 subject to a 10-year lock up agreement and 1,000,000 from the Company’s S-8 upon execution of the PSA.
Allowances: Our CEO may receive allowances up $3,000 per month.
| 41 |
|
|
| Table of Contents |
During the year ended March 31, 2017, the Company borrowed a total amount of $191,796 from a shareholder, who is also married to the CEO of the Company, and repaid $218,596 for payments of operating expenses and purchase of thoroughbreds and $39,508 for a management fee.
Review, Approval and Ratification of Related Party Transactions
Given our small size and limited financial resources, we have not adopted formal policies and procedures for the review, approval or ratification of transactions, such as those described above, with our executive officer(s), Director(s) and significant stockholders. We intend to establish formal policies and procedures in the future, once we have sufficient resources and have appointed additional Directors, so that such transactions will be subject to the review, approval or ratification of our Board of Directors, or an appropriate committee thereof. On a moving forward basis, our Directors will continue to approve any related party transaction.
POLICIES WITH RESPECT TO CERTAIN ACTIVITIES
Conflict of Interest Policies
Our governing instruments do not restrict any of our directors, officers, stockholders or affiliates from having a pecuniary interest in an investment or transaction in which we have an interest or from conducting, for their own account, business activities of the type we conduct. However, our policies will be designed to eliminate or minimize potential conflicts of interest. A “conflict of interest” occurs when a director’s, officer’s or employee’s private interest interferes in any way, or appears to interfere, with the interests of the Company as a whole. Our sole director plans to adopt a policy that discloses personal conflicts of interest. This policy will provide that any situation that involves, or may reasonably be expected to involve, a conflict of interest must be disclosed immediately to our director and subsequently to our shareholders in our next semi-annual or annual report. These policies may not be successful in eliminating the influence of conflicts of interest. If they are not successful, decisions could be made that might fail to reflect fully the interests of all stockholders.
Item 14: Securities Being Offered
Common Stock
On June 28, 2016, with an effective date of July 13, 2016, the Company filed Amended and Restated Articles of Incorporation with the Nevada Secretary of State to effect a 1-for-200 share Reverse Split of the Company’s issued and outstanding common stock. Common share amounts and per share amounts in this report have been retroactively adjusted to reflect this reverse split.
Each share of our common stock entitles its holder to one vote in the election of each director and on all other matters voted on generally by our stockholders, other than any matter that (1) solely relates to the terms of any outstanding series of preferred stock or the number of shares of that series and (2) does not affect the number of authorized shares of preferred stock or the powers, privileges and rights pertaining to the common stock. No share of our common stock affords any cumulative voting rights. This means that the holders of a majority of the voting power of the shares voting for the election of directors can elect all directors to be elected if they choose to do so.
Holders of our common stock will be entitled to dividends in such amounts and at such times as our Board of Directors in its discretion may declare out of funds legally available for the payment of dividends. We currently intend to retain our entire available discretionary cash flow to finance the growth, development and expansion of our business and do not anticipate paying any cash dividends on the common stock in the foreseeable future.
| 42 |
|
|
| Table of Contents |
Any future dividends will be paid at the discretion of our Board of Directors after taking into account various factors, including:
|
|
· |
general business conditions; |
|
|
· |
industry practice; |
|
|
· |
our financial condition and performance; |
|
|
· |
our future prospects; |
|
|
· |
our cash needs and capital investment plans; |
|
|
· |
our obligations to holders of any preferred stock we may issue; |
|
|
· |
income tax consequences; and |
|
|
· |
the restrictions Nevada and other applicable laws and our credit arrangements then impose. |
If we liquidate or dissolve our business, the holders of our common stock will share ratably in all our assets that are available for distribution to our stockholders after our creditors are paid in full and the holders of all series of our outstanding preferred stock, if any, receive their liquidation preferences in full.
Our common stock has no preemptive rights and is not convertible or redeemable or entitled to the benefits of any sinking or repurchase fund.
Preferred Shares
Series A Preferred Shares
We have 8,000,000 shares of Series A Preferred Stock outstanding which have the rights, designations and preferences below:
|
|
· |
each one (1) share of Series A Preferred Stock is entitled to zero (0) dividends; |
|
|
· |
each one (1) share of Series A Preferred Stock is entitled to zero (0) votes on all matters submitted to a vote of our common stockholders; |
|
|
· |
each one (1) share of Series A Preferred Stock shall be convertible into zero (0) shares of our common stock; and |
|
|
· |
upon our Liquidation, dissolution or winding up the holders of the Series A Preferred Shares shall be entitled to receive $.01 per share held; |
The provisions in our Articles of Incorporation relating to the preferred stock allows our directors to issue preferred stock with rights to multiple votes per share and dividend rights which would have priority over any dividends paid with respect to our Common Stock. The issuance of preferred stock with such rights may make more difficult the removal of management even if such removal would be considered beneficial to shareholders generally, and will have the effect of limiting shareholder participation in certain transactions such as mergers or tender offers if such transactions are not favored by incumbent management.
| 43 |
|
|
| Table of Contents |
Series B Preferred Shares
The Company has 9,965,000 shares of Series B Preferred Stock, which have the rights, designations and preferences below:
|
|
· |
each one (1) share of Series B Preferred Stock is entitled to zero (0) dividends; |
|
|
· |
each one (1) share of Series B Preferred Stock is entitled to four hundred (400) Common Share votes on all matters submitted to a vote of our common stockholders; |
|
|
· |
each one (1) share of Series B Preferred Stock shall be convertible into zero (0) shares of our common stock; and |
|
|
· |
upon our Liquidation, dissolution or winding up the holders of the Series B Preferred Shares shall be entitled to receive $.01 per share held; |
Dividends
Since inception we have not paid any dividends on our common stock. We currently do not anticipate paying any cash dividends in the foreseeable future on our common stock, when issued pursuant to this offering. Although we intend to retain our earnings, if any, to finance the exploration and growth of our business, our Board of Directors will have the discretion to declare and pay dividends in the future. Payment of dividends in the future will depend upon our earnings, capital requirements, and other factors, which our Board of Directors may deem relevant.
Options and Warrants
None.
The validity of the securities offered by this Offering Circular has been passed upon for us by Nathaniel Reinking, 4301 Orchard Lane, Bloomington, Indiana 47403.
Our balance sheet as of March 31, 2017 and the related statement of operations, changes in stockholders’ equity and cash flows for period ended March 31, 2017 included in this Offering Circular has been audited by Benjamin & Young, an independent registered public accounting firm, as indicated in their report with respect thereto, and have been so included in reliance upon the report of such firm given on their authority as experts in accounting and auditing.
APPOINTMENT OF AUDITOR
Our board of directors appointed Benjamin & Young. as our independent registered public accounting firm.
WHERE YOU CAN FIND MORE INFORMATION
We have filed an offering statement on Form 1-A with the Commission under Regulation A of the Securities Act with respect to the Common Stock offered by this Offering Circular. This Offering Circular, which constitutes a part of the offering statement, does not contain all of the information set forth in the offering statement or the exhibits and schedules filed therewith. For further information with respect to us and our Common Stock, please see the offering statement and the exhibits and schedules filed with the offering statement. Statements contained in this Offering Circular regarding the contents of any contract or any other document that is filed as an exhibit to the offering statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the offering statement. The offering statement, including its exhibits and schedules, may be inspected without charge at the public reference room maintained by the Commission, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and copies of all or any part of the offering statement may be obtained from such offices upon the payment of the fees prescribed by the Commission. Please call the Commission at 1-800-SEC-0330 for further information about the public reference room. The Commission also maintains an Internet website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission. The address of the site is www.sec.gov.
| 44 |
|
|
| Table of Contents |
We also maintain a website at www.buscarcompany.com After the completion of this offering, you may access these materials at our website free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the Commission. Information contained on our website is not a part of this Offering Circular and the inclusion of our website address in this Offering Circular is an inactive textual reference only.
After the completion of this Tier II, Regulation A offering, we intend to become subject to the information and periodic reporting requirements of the Exchange Act. If we become subject to the reporting requirements of the Exchange Act, we will file periodic reports, proxy statements and other information with the Commission. Such periodic reports, proxy statements and other information will be available for inspection and copying at the public reference room and on the Commission’s website referred to above. Until we become or never become subject to the reporting requirements of the Exchange Act, we will furnish the following reports, statements, and tax information to each stockholder:
|
|
1. | Reporting Requirements under Tier II of Regulation A. Following this Tier II, Regulation A offering, we will be required to comply with certain ongoing disclosure requirements under Rule 257 of Regulation A. We will be required to file: an annual report with the SEC on Form 1-K; a semi-annual report with the SEC on Form 1-SA; current reports with the SEC on Form 1-U; and a notice under cover of Form 1-Z. The necessity to file current reports will be triggered by certain corporate events, similar to the ongoing reporting obligation faced by issuers under the Exchange Act, however the requirement to file a Form 1-U is expected to be triggered by significantly fewer corporate events than that of the Form 8-K. Such reports and other information will be available for inspection and copying at the public reference room and on the Commission’s website referred to above. Parts I & II of Form 1-Z will be filed by us if and when we decide to and are no longer obligated to file and provide annual reports pursuant to the requirements of Regulation A. |
|
|
|
|
|
|
2. | Annual Reports. As soon as practicable, but in no event later than one hundred twenty (120) days after the close of our fiscal year, ending on the last Sunday of a calendar year, our board of directors will cause to be mailed or made available, by any reasonable means, to each Stockholder as of a date selected by the board of directors, an annual report containing financial statements of the Company for such fiscal year, presented in accordance with GAAP, including a balance sheet and statements of operations, company equity and cash flows, with such statements having been audited by an accountant selected by the board of directors. The board of directors shall be deemed to have made a report available to each stockholder as required if it has either (i) filed such report with the SEC via its Electronic Data Gathering, Analysis and Retrieval, or EDGAR, system and such report is publicly available on such system or (ii) made such report available on any website maintained by us and available for viewing by the stockholders. |
| 45 |
|
|
| Table of Contents |
INDEX TO FINANCIAL STATEMENTS
| F-1 |
|
|
| Table of Contents |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| F-2 |
|
|
| Table of Contents |
|
Condensed Consolidated Statements of Operations |
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
|
|
Three Months Ended September 30, |
|
|
Six Months Ended September 30, |
|
||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
$ | - |
|
|
$ | - |
|
|
$ | - |
|
|
$ | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
133,511 |
|
|
|
1,256,223 |
|
|
|
293,772 |
|
|
|
1,795,339 |
|
|
Impairment loss |
|
|
- |
|
|
|
- |
|
|
|
333,000 |
|
|
|
- |
|
|
Total operating expenses |
|
|
133,511 |
|
|
|
1,256,223 |
|
|
|
626,772 |
|
|
|
1,795,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(133,511 | ) |
|
|
(1,256,223 | ) |
|
|
(626,772 | ) |
|
|
(1,795,339 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance claim income |
|
|
- |
|
|
|
- |
|
|
|
300,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(133,511 | ) |
|
|
(1,256,223 | ) |
|
|
(326,772 | ) |
|
|
(1,795,339 | ) |
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net loss |
|
$ | (133,511 | ) |
|
$ | (1,256,223 | ) |
|
$ | (326,772 | ) |
|
$ | (1,795,339 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend on Series B convertible preferred stock |
|
|
- |
|
|
|
(1,397 | ) |
|
|
- |
|
|
|
(1,397 | ) |
|
Net loss attributable to common stockholders |
|
|
(133,511 | ) |
|
|
(1,257,620 | ) |
|
$ | (326,772 | ) |
|
$ | (1,796,736 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: basic and diluted |
|
$ | (0.01 | ) |
|
$ | (0.10 | ) |
|
$ | (0.02 | ) |
|
$ | (0.14 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: basic and diluted |
|
|
18,681,321 |
|
|
|
12,532,916 |
|
|
|
18,672,581 |
|
|
|
12,532,916 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
| F-3 |
|
|
| Table of Contents |
|
Consolidated Statement of Changes in Stockholders’ Equity (Deficit) |
|
For the Six Months Ended September 30, 2017 and Fiscal Years Ended March 31, 2017 and 2016 |
|
|
|
Series A Preferred Stock |
|
|
Series B Preferred Stock |
|
|
Common Stock |
|
|
Common Stock |
|
|
Additional Paid-in |
|
|
Accumulated |
|
|
Total Stockholders’ |
|
|||||||||||||||||||
|
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Payable |
|
|
Capital |
|
|
Deficit |
|
|
Deficit |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Balance, March 31, 2015 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
- |
|
|
$ | - |
|
|
|
1,125 |
|
|
$ | - |
|
|
$ | 390,000 |
|
|
$ | 13,929,870 |
|
|
$ | (14,736,194 | ) |
|
$ | (415,524 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued for services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,750 |
|
|
|
- |
|
|
|
- |
|
|
|
225,000 |
|
|
|
- |
|
|
|
225,000 |
|
|
Common stock issued for debt settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,500 |
|
|
|
1 |
|
|
|
- |
|
|
|
187,540 |
|
|
|
- |
|
|
|
187,541 |
|
|
Common stock issued exchanged for common stock payable |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
36,000 |
|
|
|
4 |
|
|
|
(390,000 | ) |
|
|
389,996 |
|
|
|
- |
|
|
|
- |
|
|
Common Stock issued to CEO for debt settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
325,000 |
|
|
|
32 |
|
|
|
- |
|
|
|
299,968 |
|
|
|
- |
|
|
|
300,000 |
|
|
Debt settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,254 |
|
|
|
- |
|
|
|
5,254 |
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(525,197 | ) |
|
|
(525,197 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2016 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
- |
|
|
$ | - |
|
|
|
372,375 |
|
|
$ | 37 |
|
|
$ | - |
|
|
$ | 15,037,628 |
|
|
$ | (15,261,391 | ) |
|
$ | (222,926 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment for reverse split |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
803 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Series B Preferred stock issued to CEO |
|
|
- |
|
|
|
- |
|
|
|
10,000,000 |
|
|
|
1,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,000 | ) |
|
|
- |
|
|
|
- |
|
|
Common stock issued for cash |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,760,643 |
|
|
|
176 |
|
|
|
- |
|
|
|
1,980,824 |
|
|
|
- |
|
|
|
1,981,000 |
|
|
Common stock issued for services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,447,500 |
|
|
|
245 |
|
|
|
- |
|
|
|
2,685,755 |
|
|
|
- |
|
|
|
2,686,000 |
|
|
Common stock issued for conversion of Series B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
(35,000 | ) |
|
|
(3 | ) |
|
|
14,000,000 |
|
|
|
1,400 |
|
|
|
- |
|
|
|
- |
|
|
|
(1,397 | ) |
|
|
- |
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,372,540 | ) |
|
|
(3,372,540 | ) |
|
Dividend Paid |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,360 | ) |
|
|
(5,360 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2017 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
9,965,000 |
|
|
$ | 997 |
|
|
|
18,581,321 |
|
|
$ | 1,858 |
|
|
$ | - |
|
|
$ | 19,703,207 |
|
|
$ | (18,640,688 | ) |
|
$ | 1,066,174 |
|
|
Common stock issued for services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100,000 |
|
|
|
10 |
|
|
|
- |
|
|
|
32,000 |
|
|
|
- |
|
|
|
32,010 |
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(326,772 | ) |
|
|
(326,772 | ) |
|
Balance, SEPTEMBER 30, 2017 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
9,965,000 |
|
|
$ | 997 |
|
|
|
18,681,321 |
|
|
$ | 1,868 |
|
|
$ | - |
|
|
$ | 19,735,207 |
|
|
$ | (18,967,460 | ) |
|
$ | 771,412 |
|
The accompanying notes are an integral part of these consolidated financial statements.
| F-4 |
|
|
| Table of Contents |
|
Condensed Consolidated Statements of Cash Flows |
||||||||
|
(Unaudited)
|
||||||||
|
|
|
Six Months Ended September 30, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
Cash Flows From Operating Activities |
|
|
|
|
|
|
||
|
Net loss |
|
$ | (326,772 | ) |
|
$ | (1,795,339 | ) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
32,010 |
|
|
|
1,753,500 |
|
|
Depreciation |
|
|
104,182 |
|
|
|
7,788 |
|
|
Impairment |
|
|
333,000 |
|
|
|
- |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
|
45,764 |
|
|
|
- |
|
|
Accounts payable and accrued liabilities |
|
|
14,485 |
|
|
|
(5,000 | ) |
|
Net cash provided by (used in) operating activities |
|
|
202,669 |
|
|
|
(39,051 | ) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
Purchase of thoroughbreds |
|
|
- |
|
|
|
(104,858 | ) |
|
Net cash used in investing activities |
|
|
- |
|
|
|
(104,858 | ) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
Common stock issued |
|
|
- |
|
|
|
595,000 |
|
|
Borrowings under due to related party |
|
|
- |
|
|
|
191,796 |
|
|
Repayments of due to related party |
|
|
- |
|
|
|
(95,930 | ) |
|
Net cash provided by financing activities |
|
|
- |
|
|
|
690,866 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash and cash equivalents increase for the period |
|
|
202,669 |
|
|
|
546,957 |
|
|
Cash and cash equivalents at beginning of period |
|
|
286,527 |
|
|
|
- |
|
|
Cash and cash equivalents at end of period |
|
$ | 489,196 |
|
|
$ | 546,957 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information |
|
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ | - |
|
|
$ | - |
|
|
Cash paid for interest |
|
$ | - |
|
|
$ | - |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Cash Investing And Financing Activities |
|
|
|
|
|
|
|
|
|
Series B Preferred shares issued to Company officer |
|
$ | - |
|
|
$ | 1,000 |
|
|
Conversion of Series B Preferred stock into common stock |
|
$ | - |
|
|
$ | 1,400 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
| F-5 |
|
|
| Table of Contents |
Notes to Unaudited Condensed Consolidated Financial Statements
September 30, 2017
Note 1 - Business
Buscar Company. (“Buscar”, “we”, “us”, “our”, the “Company”) was incorporated in Nevada as Cascade Springs Ltd. on January 19, 2010. In 2012, we amended our Articles of Incorporation to change our name to Colorado Gold Mines, Inc. On June 18, 2014, changed our name to Buscar Oil, Inc. On May 19, 2015, the Company changed its name to Buscar Company. Buscar is domiciled in the state of Nevada, and its corporate headquarter is located in Los Angeles, CA. The Company selected March 31 as its fiscal year end.
The Company’s business is the buying, selling and racing of thoroughbreds that can race in the allowance and stakes levels of thoroughbred racing; however, the Company will initially begin in the claiming level of thoroughbred racing. The Company intends to acquire in its claiming division before acquiring horses for its allowance/stakes division. These horses will provide the Company with revenue and a foundation to build out a stakes level stable. The Company’s main focus will be acquiring horses that will be capable of racing in stake races throughout the Country.
Note 2 - Going Concern
These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these unaudited condensed consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At September 30, 2017, the Company had not yet achieved profitable operations, has accumulated losses of $18,967,460 since its inception and expects to incur further losses in the development of its business, all of which raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on terms acceptable to the Company.
Note 3 - Summary of Significant Accounting Policies
Basis of Presentation of Interim Financial Statements
The accompanying unaudited interim consolidated financial statements as of and for the six months ended September 30, 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. All intercompany balances and transactions have been eliminated in consolidation. Operating results for the six ended September 30, 2017 are not necessarily indicative of the results that may be expected for any future periods or the year ending March 31, 2018. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on July 14, 2017.
| F-6 |
|
|
| Table of Contents |
Use of Estimates and Assumptions
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. It is reasonably possible that a change in the Company’s estimates will occur in the near term and such change could be material as information becomes available. The Company’s estimates include thoroughbreds reserve for potential impairment, and contingent liabilities.
Consolidation Policy
The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, Buscar Stables, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Thoroughbreds
The Company depreciates thoroughbreds via straight-line depreciation over its useful life of 3 years.
The thoroughbreds are stated at the lower of cost or market value. The cost was deemed to be the best evidence of market value and the company’s thoroughbreds were therefore stated at cost. Costs of maintaining horses prior to maturity and entered into a race or disposition are capitalized as additional costs of the horse. When a horse is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of operations.
The company evaluates the recoverability of its Long-Term Assets in accordance with ASC topic 360, which requires recognition of impairments of long lived assets in the event an indication of impairment exists and the net book value of such assets exceeds the expected future value net cash flows attainable to such assets.
Cost of Development represent stud fee, boarding, training, blacksmith, veterinary and land use for the horses. These specific costs are capitalized until the horse reaches maturity.
Long-Lived Assets
Long-lived assets are evaluated for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value.
Stock-Based Compensation
ASC 718, ”Compensation – Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the consolidated financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, ”Equity – Based Payments to Non-Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.
Share-based expense totaled $32,010 and $1,753,500 for the six months ended September 30, 2017 and 2016, respectively. Share-based expense totaled $32,010 and $1,228,500 for the three months ended September 30, 2017 and 2016, respectively.
| F-7 |
|
|
| Table of Contents |
Thoroughbred Revenue Recognition
The Company pursues opportunities to realize revenues from a principal activity: breeding the thoroughbreds. It is the Company’s policy that revenues and gains will be recognized in accordance with ASC Topic 605-10-25, “Revenue Recognition.” Under ASC Topic 605-10-25, revenue earning activities such as selling the horses and the Company has substantially accomplished all it must do to be entitled to the benefits represented by the revenue. Gains or losses from the sale of the horses are recognized when the horse is sold, and the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of operations.
Recent Accounting Pronouncements
Revenue from Contracts with Customers
In September 2017, the FASB has issued Accounting Standards Update (ASU) No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.
In May 2014, the FASB issued accounting standards updates which modifies the requirements for identifying, allocating, and recognizing revenue related to the achievement of performance conditions under contracts with customers. This update also requires additional disclosure related to the nature, amount, timing, and uncertainty of revenue that is recognized under contracts with customers. This guidance is effective for fiscal and interim periods beginning after December 15, 2017 and is required to be applied retrospectively to all revenue arrangements. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements.
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.
Note 4 - Thoroughbreds
|
|
|
September 30, 2017 |
|
|
March 31, 2017 |
|
||
|
Thoroughbreds |
|
$ | 625,103 |
|
|
$ | 625,103 |
|
|
Cost of development |
|
|
77,529 |
|
|
|
410,529 |
|
|
|
|
|
702,632 |
|
|
|
1,035,632 |
|
|
Accumulated depreciation |
|
|
(198,371 | ) |
|
|
(94,189 | ) |
|
Thoroughbreds, net |
|
$ | 504,261 |
|
|
$ | 941,443 |
|
Depreciation expense for six months ended September 30, 2017 and 2016 was $104,182 and $7,788, respectively. Depreciation expense for three months ended September 30, 2017 and 2016 was $52,092 and $6,038, respectively. At September 30, 2017 and March 31, 2017, thoroughbreds with a cost basis of $625,103 and accumulated depreciation of $198,371 and $94,189, respectively.
| F-8 |
|
|
| Table of Contents |
On December 14, 2016, the Company paid $333,000 for stud fee which is used to mate Milania, one of the Company’s thoroughbreds, with War Front, a highly breaded third-party horse. The amount was capitalized as thoroughbreds. On August 1, 2017, the Company notified its insurance company that the mating was not successful after four breeding sessions. The insurance company approved to cover the loss of $300,000. As a result, the Company recognized an impairment loss of $0 and $333,000 for the three and six months ended September 30, 2017, respectively, and reduced the cost of development asset of $333,000. On August 8, 2017, the Company received cash of $300,000 from the insurance company.
Note 5 - Long Lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the thoroughbred level. The carrying amount of an asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. If the asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as defined in ASC 360, Property, Plant, and Equipment.
On August 1, 2017, the company was notified that Milania was not pregnant with War Front after four breeding sessions. The Company recognized an impairment loss of $333,000, and reduced the cost of development asset of $333,000.
Note 6 - Note payable
As of September 30, 2017, and March 31, 2017, the Company recorded note payable of $5,871 and $5,871, respectively. The note bears no interest and is due upon demand.
Note 7 - Commitments and Contingencies
As of September 30, 2017, the Company had a total of $222,045 of outstanding liabilities. As of this date, the Company recognizes $177,270 of outstanding liabilities related to previous Company directors, Robert Sawatsky and Kelly Fielder. The Company’s legal counsel believes that the outstanding liabilities are expected to be paid back to the previous Company directors, Robert Sawatsky and Kelly Fielder, who had originally loaned money to the Company. However, there has been no resolution of this event.
Dividend policy
The Company intends to distribute at least 16% of our net purse winnings that our company’s thoroughbreds generate. However, our ability to pay dividends is subject to limitations imposed by Nevada law. Pursuant to Nevada Revised Statute 78.288, dividends may be paid to the extent that a corporation’s assets exceed it liabilities and it is able to pay its debts as they become due in the usual course of business.
Note 8 - Equity
Preferred Stock
The Company has authorized 50,000,000 preferred shares with a par value of $0.0001 per share. Board of Directors are authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes.
| F-9 |
|
|
| Table of Contents |
Series A Preferred Stock
The Company has designated 10,000,000 preferred shares of Series A Preferred Stock with a par value of $0.0001 per share.
As at September 30, 2017 and March 31, 2017, the Company had 8,000,000 shares of Series A Preferred Stock issued and outstanding.
Series B Preferred Stock
The Company has designated 10,000,000 preferred shares of Series B Preferred Stock with a par value of $0.0001 per share.
As at September 30, 2017 and March 31, 2017, the Company had 9,965,000 shares of Series B Preferred Stock issued and outstanding, respectively.
Common Stock
The Company has authorized 500,000,000 shares of common stock with a par value of $0.0001 per share.
During the six months ended September 30, 2017, the Company issued 100,000 shares of common stock for services, with a fair value of $32,010.
As of September 30, 2017, and March 31, 2017, the Company had 18,681,321 and 18,581,321 shares of common stock issued and outstanding, respectively.
Note 9 - Loss Per Common Share
Basic earnings per share (“EPS”) is computed by dividing earnings (loss) attributable to common shareholders by the weighted average number of common shares outstanding for the periods. Diluted EPS reflects the potential dilution of securities that could share in the earnings. As of September 30, 2017, and March 31, 2017 the Company did not have any dilutions.
Note 10 – Subsequent Events
The Company has analyzed its operations subsequent to September 30, 2017 to the date these financial statements were issued, and have the following events to disclose:
|
|
· |
The Company acquired Lazy Susan at the 2017 Keenland Auction for $120,000. |
|
|
· |
The Company sold two foals at the 2017 Keeneland Auction for a total of $330,000. The Company expects to receive the funds within 45 days after the conclusion of the sale. |
|
|
· |
The Company’s thoroughbred Mr. Ability was retired due to injury. |
| F-10 |
|
|
| Table of Contents |
|
|
|
1100 N. Tustin Avenue, 2nd floor Anaheim, CA 92807 Office: (714) 238-0000 E-Fax: (714) 451-4160 www.bycpas.com |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Buscar Company
We have audited the accompanying balance sheet of Buscar Company (the “Company”) as of March 31, 2017 and March 31, 2016, and the related statements of operations, changes in stockholders’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2017 and 2016 and the results of its operations, changes in stockholders’ deficit and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, these conditions raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.
/s/ Benjamin & Young, LLP
Anaheim, California
July 14, 2017
| F-11 |
|
|
| Table of Contents |
|
Consolidated Balance Sheets |
The accompanying notes are an integral part of these consolidated financial statements.
| F-12 |
|
|
| Table of Contents |
|
Consolidated Statements of Operations |
|
|
|
Year Ended March 31, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
|
|
|
|
|
|
|
||
|
Revenue |
|
$ | - |
|
|
$ | - |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
3,372,540 |
|
|
|
402,656 |
|
|
Total operating expenses |
|
|
3,372,540 |
|
|
|
402,656 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(3,372,540 | ) |
|
|
(402,656 | ) |
|
|
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
|
Loss on debt settlement |
|
|
- |
|
|
|
(122,541 | ) |
|
Total other expenses |
|
|
- |
|
|
|
(122,541 | ) |
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(3,372,540 | ) |
|
|
(525,197 | ) |
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,372,540 | ) |
|
|
(525,197 | ) |
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend on Series B convertible preferred stock |
|
|
(1,397 | ) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
|
$ | (3,373,937 | ) |
|
$ | (525,197 | ) |
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: basic and diluted |
|
$ | (0.28 | ) |
|
$ | (1.80 | ) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: basic and diluted |
|
|
12,179,422 |
|
|
|
292,492 |
|
The accompanying notes are an integral part of these consolidated financial statements.
| F-13 |
|
|
| Table of Contents |
|
Consolidated Statement of Changes in Stockholders’ Equity (Deficit) |
|
For the Years Ended March 31, 2017 and 2016 |
|
|
|
Series A Preferred Stock |
|
|
Series B Preferred Stock |
|
|
Common Stock |
|
|
Common Stock |
|
|
Additional Paid-in |
|
|
Accumulated |
|
|
Total Stockholders’ |
|
|||||||||||||||||||
|
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Payable |
|
|
Capital |
|
|
Deficit |
|
|
Deficit |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Balance, March 31, 2015 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
- |
|
|
$ | - |
|
|
|
1,125 |
|
|
$ | - |
|
|
$ | 390,000 |
|
|
$ | 13,929,870 |
|
|
$ | (14,736,194 | ) |
|
$ | (415,524 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued for services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,750 |
|
|
|
- |
|
|
|
- |
|
|
|
225,000 |
|
|
|
- |
|
|
|
225,000 |
|
|
Common stock issued for debt settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,500 |
|
|
|
1 |
|
|
|
- |
|
|
|
187,540 |
|
|
|
- |
|
|
|
187,541 |
|
|
Common stock issued exchanged for common stock payable |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
36,000 |
|
|
|
4 |
|
|
|
(390,000 | ) |
|
|
389,996 |
|
|
|
- |
|
|
|
- |
|
|
Common Stock issued to CEO for debt settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
325,000 |
|
|
|
32 |
|
|
|
- |
|
|
|
299,968 |
|
|
|
- |
|
|
|
300,000 |
|
|
Debt settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,254 |
|
|
|
- |
|
|
|
5,254 |
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(525,197 | ) |
|
|
(525,197 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2016 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
- |
|
|
$ | - |
|
|
|
372,375 |
|
|
$ | 37 |
|
|
$ | - |
|
|
$ | 15,037,628 |
|
|
$ | (15,261,391 | ) |
|
$ | (222,926 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment for reverse split |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
803 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Series B Preferred stock issued to CEO |
|
|
- |
|
|
|
- |
|
|
|
10,000,000 |
|
|
|
1,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,000 | ) |
|
|
- |
|
|
|
- |
|
|
Common stock issued for cash |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,760,643 |
|
|
|
176 |
|
|
|
- |
|
|
|
1,980,824 |
|
|
|
- |
|
|
|
1,981,000 |
|
|
Common stock issued for services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,447,500 |
|
|
|
245 |
|
|
|
- |
|
|
|
2,685,755 |
|
|
|
- |
|
|
|
2,686,000 |
|
|
Common stock issued for conversion of Series B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
(35,000 | ) |
|
|
(3 | ) |
|
|
14,000,000 |
|
|
|
1,400 |
|
|
|
- |
|
|
|
- |
|
|
|
(1,397 | ) |
|
|
- |
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,372,540 | ) |
|
|
(3,372,540 | ) |
|
Dividend Paid |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,360 | ) |
|
|
(5,360 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2017 |
|
|
8,000,000 |
|
|
$ | 800 |
|
|
|
9,965,000 |
|
|
$ | 997 |
|
|
|
18,581,321 |
|
|
$ | 1,858 |
|
|
$ | - |
|
|
$ | 19,703,207 |
|
|
$ | (18,640,688 | ) |
|
$ | 1,066,174 |
|
The accompanying notes are an integral part of these consolidated financial statements.
| F-14 |
|
|
| Table of Contents |
|
Consolidated Statements of Cash Flows |
|
|
|
Year Ended March 31, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
|
|
|
|
|
|
|
||
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
||
|
Net loss |
|
$ | (3,372,540 | ) |
|
$ | (525,197 | ) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
2,686,000 |
|
|
|
357,000 |
|
|
Depreciation |
|
|
94,189 |
|
|
|
- |
|
|
Loss on debt settlement |
|
|
- |
|
|
|
122,541 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
|
(45,764 | ) |
|
|
- |
|
|
Accounts payable and accrued liabilities |
|
|
18,934 |
|
|
|
5,485 |
|
|
Net Cash Used in Operating Activities |
|
|
(619,181 | ) |
|
|
(40,171 | ) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
Purchases of thoroughbreds |
|
|
(1,035,632 | ) |
|
|
- |
|
|
Net Cash Used in Investing Activities |
|
|
(1,035,632 | ) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
Proceeds from issuances of common stock |
|
|
1,981,000 |
|
|
|
- |
|
|
Borrowings under due to related party |
|
|
231,304 |
|
|
|
26,800 |
|
|
Repayments of due to related party |
|
|
(258,104 | ) |
|
|
- |
|
|
Proceeds from note payable |
|
|
- |
|
|
|
13,371 |
|
|
Repayment of note payable |
|
|
(7,500 | ) |
|
|
- |
|
|
Dividend paid |
|
|
(5,360 | ) |
|
|
- |
|
|
Net Cash Provided by Financing Activities |
|
|
1,941,340 |
|
|
|
40,171 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash increase for the year |
|
|
286,527 |
|
|
|
- |
|
|
Cash at beginning of year |
|
|
- |
|
|
|
- |
|
|
Cash at End of Year |
|
$ | 286,527 |
|
|
$ | - |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information |
|
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ | - |
|
|
$ | - |
|
|
Cash paid for interest |
|
$ | - |
|
|
$ | - |
|
|
|
|
|
|
|
|
|
|
|
|
Non Cash Investing And Financing Activities |
|
|
|
|
|
|
|
|
|
Series B Preferred shares issued to related party |
|
$ | 1,000 |
|
|
$ | - |
|
|
Conversion of Series B Preferred stock into common stock |
|
$ | 1,400 |
|
|
$ | - |
|
|
Issuance of 36,000 shares of common stock in exchange for common stock payable |
|
$ | - |
|
|
$ | 390,000 |
|
|
Issuance of 3,750 shares of common stock for consulting services |
|
$ | - |
|
|
$ | 225,000 |
|
|
Issuance of 325,000 shares of common stock in exchange for $300,000 of debt settlement to a related party |
|
$ | - |
|
|
$ | 300,000 |
|
|
Issuance of 6,500 shares of common stock in exchange for $65,000 of debt settlement to an unrelated party |
|
$ | - |
|
|
$ | 187,541 |
|
|
Debt settlement by related party |
|
$ | - |
|
|
$ | 5,254 |
|
The accompanying notes are an integral part of these consolidated financial statements.
| F-15 |
|
|
| Table of Contents |
Notes to Consolidated Financial Statements
March 31, 2017 and 2016
Note 1 - Business
Buscar Company. (“Buscar”, “we”, “us”, “our”, the “Company”) was incorporated in Nevada as Cascade Springs Ltd. on January 19, 2010. In 2012, we amended our Articles of Incorporation to change our name to Colorado Gold Mines, Inc. On June 18, 2014, changed our name to Buscar Oil, Inc. On May 19, 2015, the Company changed its name to Buscar Company. Buscar is domiciled in the state of Nevada, and its corporate headquarter is located in Los Angeles, CA. The Company selected March 31 as its fiscal year end.
The Company’s business is the buying, selling and racing of thoroughbreds that can race in the allowance and stakes levels of thoroughbred racing; however, the Company will initially begin in the claiming level of thoroughbred racing. The Company intends to acquire in its claiming division before acquiring horses for its allowance/stakes division. These horses will provide the Company with revenue and a foundation to build out a stakes level stable. The Company’s main focus will be acquiring horses that will be capable of racing in stake races throughout the Country.
Note 2 - Summary of Significant Accounting Policies
The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. Significant accounting policies are as follows:
Use of Estimates and Assumptions
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. It is reasonably possible that a change in the Company’s estimates will occur in the near term and such change could be material as information becomes available. The Company’s estimates include thoroughbreds reserve for potential impairment, and contingent liabilities.
Consolidation Policy
The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, Buscar Stables, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Cash
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2017 and 2016, the Company had $286,527 and $0 of cash, respectively.
Income Taxes
We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.
| F-16 |
|
|
| Table of Contents |
As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions. Generally, we remain subject to Internal Revenue Service examination of our 2012 through 2016 U.S. federal income tax returns, and remain subject to California Franchise Tax Board examination of our 2012 through 2016 California Franchise Tax Returns. However, we have certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.
Thoroughbreds
The Company depreciates thoroughbreds via straight-line depreciation over its useful life of 3 years.
The thoroughbreds are stated at the lower of cost or market value. The cost was deemed to be the best evidence of market value and the company’s thoroughbreds were therefore stated at cost. Costs of maintaining horses prior to maturity and entered into a race or disposition are capitalized as additional costs of the horse. When a horse is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of operations.
The company evaluates the recoverability of its Long Term Assets in accordance with ASC topic 360, which requires recognition of impairments of long lived assets in the event an indication of impairment exists and the net book value of such assets exceeds the expected future value net cash flows attainable to such assets. The Company did not recognize any impairment losses for any periods presented.
|
|
|
March 31, 2017 |
|
|
March 31, 2016 |
|
||
|
Thoroughbreds |
|
$ | 625,101 |
|
|
$ - |
|
|
|
Cost of development |
|
|
410,529 |
|
|
|
- |
|
|
|
|
|
1,035,630 |
|
|
|
- |
|
|
Accumulated depreciation |
|
|
(94,187 | ) |
|
|
- |
|
|
Thoroughbreds, net |
|
$ | 941,443 |
|
|
$ - |
|
|
Cost of Development represent stud fee, boarding, training, blacksmith, veterinary and land use for the horses. These specific costs are capitalized until the horse reaches maturity.
During the years ended March 31, 2017 and 2016, the Company recorded depreciation of $94,187 and $0, respectively.
Thoroughbred Revenue Recognition
The Company pursues opportunities to realize revenues from a principal activity: breeding the thoroughbreds. It is the Company’s policy that revenues and gains will be recognized in accordance with ASC Topic 605-10-25, “Revenue Recognition.” Under ASC Topic 605-10-25, revenue earning activities such as selling the horses and the Company has substantially accomplished all it must do to be entitled to the benefits represented by the revenue. Gains or losses from the sale of the horses are recognized when the horse is sold, and the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of operations.
| F-17 |
|
|
| Table of Contents |
Basic and Diluted Loss Per Share
The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.
The following is a reconciliation of the numerator and denominator used for the computation of basic and diluted net loss per common shares:
|
|
|
Year Ended March 31, |
|
|||||
|
|
|
2017 |
|
|
2016 |
|
||
|
Numerator: |
|
|
|
|
|
|
||
|
Net loss available to stockholders |
|
$ | (3,372,540 | ) |
|
$ | (525,197 | ) |
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares – Basic and Diluted |
|
|
12,179,422 |
|
|
|
292,492 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share – Basic and Diluted |
|
$ | (0.28 | ) |
|
$ | (1.80 | ) |
Stock-Based Compensation
ASC 718, ”Compensation – Stock Compensation,” prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the consolidated financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). Accordingly, all of the stock compensation vested as of March 31, 2017 as services were rendered and fulfilled as of March 31, 2017 and stocks were issued to employees and consultants.
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, ”Equity – Based Payments to Non-Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.
Share-based expense totaled $2,686,000 and $357,000 for the years ending March 31, 2017 and 2016, respectively. The Company did not have any stock options outstanding as of March 31, 2017 and 2016.
Fair Value of Financial Instruments
The Company’s financial instruments consist primarily of cash, prepaid expenses, accounts payable and accrued expenses, and debt. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments.
| F-18 |
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The Company adopted ASC Topic 820, ”Fair Value Measurements (“ASC Topic 820”),” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value which focuses on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.
The three-level hierarchy for fair value measurements is defined as follows:
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Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; liabilities in active markets; |
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Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability other than quoted prices, either directly or indirectly, including inputs in markets that are not considered to be active; or directly or indirectly including inputs in markets that are not considered to be active; |
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Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement |
Reclassifications
Certain prior year amounts have been reclassified to conform with the current year presentation for comparative purposes.
Recent Accounting Pronouncements
The FASB has issued Accounting Standards Update (ASU) No. 2017-09, ”Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting.” ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award. The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to the modification of the terms and conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. Effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The Company does not anticipate the adoption of ASU 2017-09 will have a material impact on its consolidated financial statements.
The FASB has issued Accounting Standards Update (ASU) No. 2017-01, ”Business Combinations (Topic 805): Clarifying the Definition of a Business,” clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company does not anticipate the adoption of ASU 2017-01 will have a material impact on its consolidated financial statements.
Note 3 - Going Concern
These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At March 31, 2017, the Company had not yet achieved profitable operations, has accumulated losses of $18,640,688 since its inception and expects to incur further losses in the development of its business, all of which raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on terms acceptable to the Company.
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Note 4 - Due to Related Party
During the year ended March 31, 2017, the Company borrowed a total amount of $191,796 from a shareholder, who is also married to the CEO of the Company, and repaid $218,596 for payments of operating expenses and purchase of thoroughbreds and $39,508 for a management fee.
On March 21, 2016, the Company issued 3,750 shares of common stock to a cons ultant, who is married to our CEO, with a fair value of $225,000 for consulting services. Consultant was being retained to assist the Company in acquiring and locating thoroughbreds to acquire for its stable and to perform any and all duties as requested by the Company’s CEO. Additionally, Consultant provided use of his thoroughbred to obtain Buscar Stables license in California. This contract expired on April 30, 2016.
As of March 31, 2017 and 2016, the Company had due to related part of $0 and $26,800, respectively.
Note 5 – Note payable
During the year ended March 31, 2017, the Company repaid $7,500 to a former officer of the Company. During the year ended March 31, 2016, the Company borrowed a total amount of $13,371 for payments of operating expense on behalf of the Company. As of March 31, 2017, and 2016, the Company recorded note payable of $5,871 and $13,371, respectively. The note bears no interest and is due upon demand.
Note 6 - Commitments and Contingencies
As of March 31, 2017, the Company had a total of $207,560 of outstanding liabilities. As of this date, the Company recognizes $177,270 of outstanding liabilities related to previous Company directors, Robert Sawatsky and Kelly Fielder. The Company’s legal counsel believes that the outstanding liabilities are expected to be paid back to the previous Company directors, Robert Sawatsky and Kelly Fielder, who had originally loaned money to the Company. However, there has been no resolution of this event.
Note 7 - Equity
Preferred Stock
The Company has authorized 50,000,000 preferred shares with a par value of $0.0001 per share. Board of Directors are authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes.
Series A Preferred Stock
The Company has designated 10,000,000 preferred shares of Series A Preferred Stock with a par value of $0.0001 per share. As at March 31, 2017 and 2016, the Company had 8,000,000 shares of Series A Preferred Stock issued and outstanding.
Series B Preferred Stock
The Company has designated 10,000,000 preferred shares of Series B Preferred Stock with a par value of $0.0001 per share.
During the year ended March 31, 2017, 10,000,000 shares of Series B Preferred Stock were issued to our CEO for par value as there is no stated value.
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During the year ended March 31, 2017, 35,000 shares of Series B Preferred Stock were converted at rate of 1 preferred share to 400 common shares, resulting in the issuance of 14,000,000 shares of common stock, for a value of $1,400, of which $1,397 was recorded as a deemed dividend.
As at March 31, 2017 and 2016, the Company had 9,965,000 and 0 shares of Series B Preferred Stock issued and outstanding, respectively.
Common Stock
The Company has authorized 500,000,000 shares of common stock with a par value of $0.0001 per share.
On June 28, 2016, with an effective date of July 13, 2016, the Company filed Amended and Restated Articles of Incorporation with the Nevada Secretary of State to effect a 1-for-200 share Reverse Split of the Company’s issued and outstanding common stock. Common share amounts and per share amounts in these consolidated financial statements have been retroactively adjusted to reflect this reverse split.
During the year ended March 31, 2017, the Company issued common shares, as follows:
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2,447,500 shares for services, with a fair value of $2,686,000 as compensation |
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1,760,000 shares issued for $1.10 per share, for $1,936,000. |
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643 shares issued for $45,000. |
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803 shares for rounding up adjustment on the reverse split. |
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14,000,000 shares were issued for the conversion of 35,000 shares of Series B Preferred Stock. |
During the year ended March 31, 2016, the Company issued common shares, as follows:
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On June 8, 2015, Troy Grant, the Company’s former chief executive officer and sole member of the Board of Directors and current Chief Operating Officer, was issued 325,000 shares of restricted Common Stock in exchange for accrued salaries, bonus and expenses of $300,000. No shares have been issued to Mr. Grant prior to June 9, 2015 with regard to deferred salary and bonus. |
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On March 21, 2016, the Company issued 3,750 shares of common stock to a consultant, who is married to the CEO, with a fair value of $225,000 for consulting services (see Note 4). |
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In June 2015, 6,500 shares of common stock, having a market value of $187,514, were issued to two consultants to settle debt of $65,000. The Company recognized a loss on debt settlement of $122,541 and recorded this amount to additional paid in capital. |
As of March 31, 2017 and 2016, the Company had 18,581,321 and 372,375 shares of common stock issued and outstanding, respectively.
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Note 8 - Income Taxes
The significant components of the Company’s deferred tax assets are as follows:
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March 31, 2017 |
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March 31, 2016 |
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Deferred tax assets |
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Net operating loss carryforwards |
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$ | 18,640,688 |
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$ | 15,261,391 |
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Less: Valuation allowance for deferred tax asset |
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(18,640,688 | ) |
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(15,261,391 | ) |
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$ - |
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$ - |
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Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 34% and state statutory rate of 6.9% for 2017 and 2016 is as follows:
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March 31, 2017 |
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March 31, 2016 |
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Income tax benefit at federal statutory rate |
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(34.00 | )% |
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(34.00 | )% |
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State income tax benefit, net of effect on federal taxes |
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(6.90 | )% |
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(6.90 | )% |
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Increase in valuation allowance |
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40.90 | % |
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40.90 | % |
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Income tax expense (benefit) |
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0.0 | % |
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0.0 | % |
The amount taken into income as deferred tax assets must reflect that portion of the net operating loss carryforwards that is more likely-than-not to be realized from future operations. The Company has chosen to provide an allowance of 100% against all available income tax loss carryforwards, due to the uncertainty surrounding their realization.
No provision for income taxes has been provided in these consolidated financial statements due to the net loss. The effective tax rate differs from the 34% statutory rate for the year ended March 31, 2017 due to the change in valuation allowance.
Due to the change in ownership provisions of the Income Tax laws of United States of America, net operating loss carry forwards of approximately $18,640,688 for federal income tax reporting purposes are subject to annual limitations. When a change in ownership occurs, net operating loss carry forwards may be limited as to use in future years. They typically expire 20 years from when incurred.
Note 9 - Subsequent Events
Subsequent to the year end, 100,000 shares of common stock were issued for services.
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Exhibit No. |
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Description |
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Certificate of Incorporation, as filed with the Nevada Secretary of State |
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Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on FEBRUARY 22, 2018.
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BUSCAR COMPANY |
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By: |
/s/ Anastasia Shishova |
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Name: |
Anastasia Shishova |
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Title: |
Chief Executive Officer |
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This offering statement has been signed by the following persons in the capacities and on the dates indicated.
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Title |
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Date |
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/s/ Anastasia Shishova |
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Chief Executive Officer |
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FEBRUARY 22, 2018 |
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Anastasia Shishova |
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(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) |
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EXHIBIT 2.1
SECOND AMENDED AND RESTATED ARTICLES OF INCORPORATION OF
BUSCAR COMPANY
BUSCAR COMPANY, a corporation organized and existing under the laws of the State of Nevada (the “Corporation”), hereby certifies as follows:
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A. | The name of the Corporation is Buscar Company. The Corporation’s original Articles of Incorporation as filed with the Secretary of State of the State of Nevada on January 19, 2010 under the original corporate name of as Cascade Springs Ltd. |
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B. | This Amended and Restated Articles of Incorporation was duly adopted in accordance with Sections 78.385, 78.390 and 78.403 of the Nevada Revised Statutes of the State of Nevada, and restates, integrates and further amends the provisions of the Corporation’s Articles of Incorporation. |
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C. | Whereby, on March 13, 2017, an affirmative vote of a majority of the shareholders and board of directors approved the Restated and Amended Articles of Incorporation. |
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D. | The text of the Articles of Incorporation of this Corporation is hereby amended and restated in its entirety as set forth in Exhibit A attached hereto. |
IN WITNESS WHEREOF, Buscar Company has caused this Amended and Restated Articles of Incorporation to be executed by the undersigned officer, thereunto duly authorized, and this 13th day of March 2017.
Buscar Company
a Nevada corporation
By:
Anastasia Shishova
Chief Executive Officer
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EXHIBIT A
ARTICLE I
Name
The name of the corporation is Buscar Company (the “Corporation”)
ARTICLE II
Duration
This corporation has perpetual existence.
ARTICLE III
Corporation Purposes
The purposes for which the corporation is formed are:
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(a) | To engage in any lawful business activity from time to time authorized or approved by the board of directors of this corporation; |
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(b) | To act as principal, agent, partner or joint venturer or in any other legal capacity in any transaction; |
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(c) | To do business anywhere in the world; and |
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(d) | To have, enjoy, and exercise all of the rights, powers, and privileges conferred upon corporations incorporated pursuant to Nevada law, whether now or hereinafter in effect and whether or not herein specifically mentioned. |
The above purposes clauses shall not be limited by reference to or inference from one another, but each purpose clause shall be construed as a separate statement conferring independent purposes and powers upon the corporation.
ARTICLE IV
Capitalization
The total number of shares of stock which the corporation shall have authority to issue is 900,000,000 shares, of which 850,000,000 shares of $.0001 par value shall be designated as Common Stock and 50,000,000 shares of $.0001 shall be designated as Preferred Stock. The Preferred Stock authorized by these Articles of Incorporation may be issued in one or more series. The Board of Directors of the Corporation is authorized to determine or alter the rights, preferences, privileges and restrictions granted or imposed upon any wholly unissued series of Preferred Stock, and within the limitations or restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of any such series then outstanding) the number of shares of any such series subsequent to the issue of shares of that series, to determine the designation and par value of any series and to fix the numbers of shares of any series.
On March 13, 2017, the Company’s shareholders and directors approved a forward split of its common stock equal to 35 for 1. No fractional shares were issued and fractional shares were rounded up. The Company’s authorized was increase to 850,000,000 of Common Stock to accommodate the forward split.
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ARTICLE V
Preferred Stock
1. Series A Preferred Stock
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i. | Designation and Amount. There shall be a series of Preferred Stock designated as "Series A Preferred Stock," and the number of shares constituting such Series shall be 10,000,000. Such series is referred to herein as the "Preferred Stock." |
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ii. | Stated Capital. The amount to be represented in stated capital at all times for each share of Preferred Stock shall be $0.0001. |
3. Rank. All shares of Preferred Stock shall rank superior with all of the Corporation's Common Stock, par value $0.0001 per share (the "Common Stock"), now or hereafter issued, as to distributions of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, including the payment of dividends.
4. Dividends. No dividend shall be declared or paid on the Preferred Stock.
5. No Liquidation Preference. In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Corporation, the Series A Preferred shares shall have a priority on liquidation superior to that of the other Preferred Stock. The Series A Preferred shareholders will be entitled to preferential amounts paid in to the Corporation and be paid in full, for funds paid for the Series A Preferred Shares, if sufficient funds exist . The holders of shares of other series of Preferred Stock shall be entitled to participate with the Common Stock in all of the remaining assets of the Corporation available for distribution to its stockholders, ratably with the holders of Common Stock in proportion to the number of shares of Common Stock held by them, assuming for each holder of Preferred Stock on the record date for such distribution that each holder was the holder of record of the number (including any fraction) of shares of Common Stock into which the shares of Preferred Stock then held by such holder are then convertible. A liquidation, dissolution, or winding-up of the Corporation, as such terms are used in this Section 5, shall not be deemed to be occasioned by or to include any merger of the Corporation with or into one or more corporations or other entities, any acquisition or exchange of the outstanding shares of one or more classes or series of the Corporation, or any sale, lease, exchange, or other disposition of all or a part of the assets of the Corporation.
6. Voting Rights. Except as otherwise required by law, each Series A Preferred Share shall have voting rights and shall carry a voting weight equal to one (1) Common Share. Except as otherwise required by law or by these Articles, the holders of shares of Common Stock and Preferred Stock shall vote together.
7. No Redemption. The shares of Preferred Stock are not redeemable, unless approved by the Board of Directors and agreed upon by the Series A Preferred Shareholders.
8. Conversion Provisions. Each Series A Preferred Share cannot be converted into Common Shares, unless it is approved by the Board of Directors and agreed upon by the Series A Preferred Shareholders.
9. Outstanding Shares. For purposes of these Articles of Designation, all shares of Preferred Stock shall be deemed outstanding except (i) from the date of surrender of certificates representing shares of Preferred Stock, all shares of Preferred Stock converted into Common Stock; and (ii) from the date of registration of transfer, all shares of Preferred Stock held of record by the Corporation or any subsidiary of the Corporation.
10. Severability of Provisions. Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable if a period of time were extended or shortened or a particular percentage were increased or decreased, then such court may make such change as shall be necessary to render the provision in question effective and valid under applicable law.
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B. Series B Preferred Stock
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iii. | Designation and Amount. There shall be a series of Preferred Stock designated as "Series B Preferred Stock," and the number of shares constituting such Series shall be 10,000,000. Such series is referred to herein as the "Preferred Stock." |
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iv. | Stated Capital. The amount to be represented in stated capital at all times for each share of Preferred Stock shall be $0.0001. |
3. Rank. All shares of Preferred Stock shall rank superior with all of the Corporation's Common Stock, par value $0.0001 per share (the "Common Stock"), now or hereafter issued, as to distributions of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, including the payment of dividends.
4. Dividends. No dividend shall be declared or paid on the Preferred Stock.
5. No Liquidation Preference. In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Corporation, the Series B Preferred shares shall have a priority on liquidation superior to that of the other Preferred Stock. The Series B Preferred shareholders will be entitled to preferential amounts paid in to the Corporation and be paid in full, for funds paid for the Series B Preferred Shares, if sufficient funds exist . The holders of shares of other series of Preferred Stock shall be entitled to participate with the Common Stock in all of the remaining assets of the Corporation available for distribution to its stockholders, ratably with the holders of Common Stock in proportion to the number of shares of Common Stock held by them, assuming for each holder of Preferred Stock on the record date for such distribution that each holder was the holder of record of the number (including any fraction) of shares of Common Stock into which the shares of Preferred Stock then held by such holder are then convertible. A liquidation, dissolution, or winding-up of the Corporation, as such terms are used in this Section 5, shall not be deemed to be occasioned by or to include any merger of the Corporation with or into one or more corporations or other entities, any acquisition or exchange of the outstanding shares of one or more classes or series of the Corporation, or any sale, lease, exchange, or other disposition of all or a part of the assets of the Corporation.
6. Voting Rights. Except as otherwise required by law, each Series B Preferred Share shall have voting rights and shall carry a voting weight equal to four hundred (400) Common Shares. Except as otherwise required by law or by these Articles, the holders of shares of Common Stock and Preferred Stock shall vote together.
7. No Redemption. The shares of Preferred Stock are not redeemable, unless approved by the Board of Directors and agreed upon by the Series B Preferred Shareholders.
8. Conversion Provisions. Each Series B Preferred Share cannot be converted into Common Shares, unless it is approved by the Board of Directors and agreed upon by the Series B Preferred Shareholders.
9. Outstanding Shares. For purposes of these Articles of Designation, all shares of Preferred Stock shall be deemed outstanding except (i) from the date of surrender of certificates representing shares of Preferred Stock, all shares of Preferred Stock converted into Common Stock; and (ii) from the date of registration of transfer, all shares of Preferred Stock held of record by the Corporation or any subsidiary of the Corporation.
10. Severability of Provisions. Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable if a period of time were extended or shortened or a particular percentage were increased or decreased, then such court may make such change as shall be necessary to render the provision in question effective and valid under applicable law.
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ARTICLE VI
Board of Directors
The business and affairs of the Corporation shall be managed by a Board of Directors which shall exercise all the powers of the Corporation except, as otherwise provided in the Bylaws, these Articles of Incorporation or by the laws of the laws of the State of Nevada.
ARTICLE VII
Directors Liability
To the fullest extent permitted by the laws of the State of Nevada (currently set forth in. NRS 78.037), as the same now exists or may hereafter be amended or supplemented, no director or officer of the Corporation shall be liable to the Corporation or to its stockholders for damages for breach of fiduciary duty as a director or officer.
ARTICLE VIII
Indemnification of Officers and Directors
The Corporation shall indemnify, to the fullest extent permitted by applicable law in effect from time to time, any person against all liability and expense (including attorneys' fees) incurred by reason of the fact that he is or was a director or officer of the Corporation, he is or was serving at the request of the Corporation as a director, officer, employee, or agent of, on in any similar managerial or fiduciary position of, another corporation, partnership, joint venture, trust or other enterprise. The Corporation shall also indemnify any person who is serving or has served the Corporation as a director, officer, employee, or agent of the Corporation to the extent and in the manner provided in any bylaw, resolution of the shareholders or directors, contract, or otherwise, so long as such provision is legally permissible.
ARTICLE IX
No Preemptive Rights
The owners of shares of stock of the Corporation shall not have a preemptive right to acquire unissued shares, treasury shares or securities convertible into such shares.
ARTICLE X
Voting Rights
Only the shares of capital stock of the Corporation designated at issuance as having voting rights shall be entitled to vote at meetings of stockholders of the Corporation, and only stockholders of record of shares having voting rights shall be entitled to notice of and to vote at meetings of stockholders of the Corporation. Each stockholder entitled to vote at any election for Directors shall have the right to vote, in person or by proxy, one vote for each share of stock owned by such stockholder for as many persons as there are Directors to be elected and for whose election such stockholder has a right to vote, and no stockholder shall he entitled to cumulate their vote.
ARTICLE X
Resident Agent
The resident agent of the Corporation shall be the State Agent and Transfer Syndicate, Inc. Nevada, whose street address is 112 North Curry Street, Carson City, Nevada 89703.
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ARTICLE XI
Statutes Not Applicable
The provisions of NRS 78.378 to 78.3793 inclusive, regarding the voting of a controlling interest in stock of a Nevada corporation and Sections 78.411 through 78.444 inclusive, regarding combinations with interested stockholders, shall not apply to the Corporation
ARTICLE XI
Quorum
One third of the votes entitled to be cast on any matter by each stockholder voting group entitled to vote on a matter shall constitute a quorum of that voting group for action on that matter by stockholders
ARTICLE XII
Bond and Debenture Holder Rights
The holder of a bond, debenture or, other obligation of the Corporation may have any of the rights of a stockholder in the Corporation to the extent determined appropriate by the Board of Directors at the time of issuance of such bond, debenture or other obligation.
ARTICLE XIII
Limitation on Right to Call Special Shareholders Meeting
Special meetings of stockholders of the Corporation may be called only by the Board of Directors pursuant to a resolution approved by a majority of the entire Board of Directors, upon not less than 10 nor more than 50 day's written notice to the stockholders of the Corporation
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EXHIBIT 2.2
BY-LAWS OF
BUSCAR COMPANY
SECTION 1
Certification of Incorporation
1.1. The nature of the business or purposes of the corporation shall be as set forth in its certificate of incorporation. These by-laws, the powers of the corporation and of its directors and stockholders, and all matters concerning the management of the business and conduct of the affairs of the corporation shall be subject to such provisions in regard thereto, if any, as are set forth in the certificate of incorporation; and the certificate of incorporation is hereby made a part of these by-laws. In these by-laws, references to the certificate of incorporation mean the provisions of the certificate of incorporation (as that term is defined in the General Corporation Law of Delaware) of the corporation as from time to time in effect, and references to these by-laws or to any requirement or provision of law mean these by-laws or such requirement or provision of law as from time to time in effect.
SECTION 2
Offices
2.1. REGISTERED OFFICE. The registered office of the corporation shall be in the City of Carson City, Nevada.
2.2. OTHER OFFICES. The corporation may also have an office or offices at such other place or places, either within or without the State of Delaware, as the Board of Directors of the corporation from time to time may determine or as the business of the corporation may require.
SECTION 3
Stockholders
3.1. ANNUAL MEETING. The annual meeting of the stockholders shall be held at nine-thirty o’clock in the forenoon on the first Monday in March in each year, unless that day be a legal holiday at the place where the meeting is to be held, in which case the meeting shall be held at the same hour on the next succeeding day not a legal holiday, or at such other date and time as shall be designated from time to time by the board of directors and stated in the notice of the meeting, at which they shall elect a board of directors and transact such other business as may be required by law or these by-law or as may be specified by the chairman of the board or by a majority of the directors then in office or by vote of the board of directors and of which notice was given in the notice of the meeting. Notwithstanding the foregoing, the first annual meeting of the corporation shall be held in the year 2010.
3.2. SPECIAL MEETING IN PLACE OF ANNUAL MEETING. If the election for directors shall not be held on the day designated by these by-laws, the directors shall cause the election to be held as soon thereafter as convenient, and to that end, if the annual meeting is omitted on the day herein provided therefor or if the election of directors shall not be held thereat, a special meeting of the stockholders may be held in place of such omitted meeting or election, and any business transacted or election held at such special meeting shall have the same effect as if transacted or held at the annual meeting, and in such case all references in these by-laws to the annual meeting of the stockholders, or to the annual election of directors, shall be deemed to refer to or include such special meeting. Any such special meeting shall be called, and the purposes thereof shall be specified in the call, as provided in Section 3.3.
3.3. SPECIAL MEETINGS. A special meeting of the stockholders may be called at any time by the chairman of the board or by the board of directors. A special meeting of the stockholders shall be called by the secretary, or in the case of the death, absence, incapacity or refusal of the secretary, by an assistant secretary or some other officer, upon application of a majority of the directors or of one or more stockholders who are entitled to vote and who hold at least fifty percent of the capital stock issued and outstanding. Any such application shall state the purpose or purposes of the proposed meeting. Any such call shall state the place, date, hour, and purposes of the meeting
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3.4. PLACE OF MEETING. All meetings of the stockholders for the election of directors or for any other purpose shall be held at such place within or without the State of Delaware as may be determined from time to time by the chairman of the board or the board of directors. Any adjourned session of any meeting of the stockholders shall be held at the place designated in the vote of adjournment.
3.5. NOTICE OF MEETINGS. Except as otherwise provided by law, a written notice of each meeting of stockholders stating the place, day and hour thereof and, in the case of a special meeting, the purposes for which the meeting is called, shall be given not less than ten nor more than sixty days before the meeting, to each stockholder entitled to vote thereat; and to each stockholder who, by law, by the certificate of incorporation or by these by-laws, is entitled to notice, by leaving such notice with him or at his residence or usual place of business, or by depositing it in the United States mail, postage prepaid, and addressed to such stockholder at his address as it appears in the records of the corporation. Such notice shall be given by the secretary, or by an officer or person designated by the board of directors, or in the case of a special meeting by the officer calling the meeting. As to any adjourned session of any meeting of stockholders, notice of the adjourned meeting need not be given if the time and place thereof are announced at the meeting at which the adjournment was taken except that if the adjournment is for more than thirty days or if after the adjournment a new record date is set for the adjourned session, notice of any such adjourned session of the meeting shall be given in the manner heretofore described. No notice of any meeting of stockholders or any adjourned session thereof need be given to a stockholder if a written waiver of notice, executed before or after the meeting or such adjournment session by such stockholder is filed with the records of the meeting or if the stockholder attends such meeting without objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any meeting of the stockholders or any adjourned session thereof need be specified in any written waiver of notice.
3.6. QUORUM OF STOCKHOLDERS. At any meeting of the stockholders, whether the same be an original or an adjourned session, a quorum shall consist of a majority in interest of all stock issued and outstanding and entitled to vote at the meeting, except in any case where a larger quorum is required by law, by the certificate of incorporation or by these by-laws. Any meeting may be adjourned from time to time by a majority of the votes properly cast upon the question, whether or not a quorum is present.
3.7. ACTION BY VOTE. When a quorum is present at any meeting, whether the same be an original or an adjourned session, a plurality of the votes properly cast for election to any office shall elect to such office and a majority of the votes properly cast upon any question other than an election to an office shall decide the question, except when a larger vote is required by law, by the certificate of incorporation or by these by-laws. No ballot shall be required for any election unless requested by a stockholder present or represented at the meeting and entitled to vote in the election.
3.8. ACTION WITHOUT MEETINGS. Unless otherwise provided in the certificate of incorporation, any action required or permitted to be taken by stockholders for or in connection with any corporate action may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.
If action is taken by unanimous consent of stockholders, the writing or writings comprising such unanimous consent shall be filed with the records of the meetings of stockholders.
If action is taken by less than unanimous consent of stockholders and in accordance with the foregoing, there shall be filed with the records of the meetings of stockholders the writing or writings comprising such less than unanimous consent and a certificate signed and attested to by the secretary that prompt notice was given to all stockholders of the taking of such action without a meeting and by less than unanimous written consent.
In the event that the action which is consented to is such as would have required the filing of a certificate under any of the provisions of the General Corporation Law of Delaware, if such action had been voted upon by the stockholders at a meeting thereof, the certificate filed under such provision shall state that written consent has been given under Section 228 of said General Corporation Law, in lieu of stating that the stockholders have voted upon the corporate action in question, if such last mentioned statement is required thereby.
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3.9. PROXY REPRESENTATION. Every stockholder may authorize another person or persons to act for him by proxy in all matters in which a stockholder is entitled to participate, whether by waiving notice of any meeting, objecting to or voting or participating at a meeting, or expressing consent or dissent without a meeting.
Every proxy must be signed by the stockholder or by his attorney-in-fact or be authorized by such other means as is provided in Section 212 of the Delaware General Corporation Law. No proxy shall be voted or acted upon after three years from its date unless such proxy provides for a longer period. A duly executed proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A proxy may be made irrevocable regardless of whether the interest with which it is coupled is an interest in the stock itself or an interest in the corporation generally. The authorization of a proxy may but need not be limited to specified action, provided, however, that if a proxy limits its authorization to a meeting or meetings of stockholders, unless otherwise specifically provided such proxy shall entitle the holder thereof to vote at any adjourned session but shall not be valid after the final adjournment thereof.
3.10. VOTES PER SHARE. Unless otherwise provided in the certificate of incorporation, each stockholder shall be entitled to one vote for each share of capital stock having voting power held by such stockholder.
3.11. LIST OF STOCKHOLDERS. The officer who has charge of the stock ledger of the corporation shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at such meeting, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in his name. Such list shall be open to examination by any stockholder, for any purpose germane to the meeting, during ordinary business hours, for at least ten days prior to the meeting either at the place within the city where the meeting is to be held, which place should be specified in the notice of such meeting, or at the place where such meeting is to be held, and shall also be produced at the time and place of the meeting during the whole time thereof and subject to the inspection of any stockholder who may be present. The stock ledger shall be the only evidence as to who are stockholders entitled to examine such list or to vote in person or by proxy at such meeting.
SECTION 4
Board of Directors
4.1. NUMBER. The Board of Directors shall consist of one or more members, the number thereof to be determined from time to time by resolution of the Board of Directors. Directors need not be stockholders.
4.2. TENURE. Except as otherwise provided by law, by the certificate of incorporation or by these by-laws, each director shall hold office until his successor is elected and qualified, or until he sooner dies, resigns, is removed or becomes disqualified.
4.3. POWERS. The business of the corporation shall be managed by the board of directors who shall have and may exercise all the power of the corporation and do all such lawful acts and things as are not by law, the certificate of incorporation or these by-laws directed or required to be exercised or done by the stockholders.
4.4. VACANCIES. Vacancies and any newly created directorships resulting from any increase in the number of directors may be filled by vote of the stockholders at a meeting called for the purpose, or by a majority of the directors then in office, although less than a quorum, or by a sole remaining director. When one or more directors shall resign from the board, effective at a future date, a majority of the directors then in office, including those who have resigned, shall have power to fill such vacancy or vacancies, the vote or action by writing thereon to take effect when such resignation or resignations shall become effective. The directors shall have and may exercise all their powers notwithstanding the existence of one or more vacancies in their number, subject to any requirements of law or of the certificate of incorporation or of these by-laws as to the number of directors required for a quorum or for any vote or other action.
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4.5. COMMITTEES. The board of directors may, by vote of a majority of the whole board, (a) designate, change the membership of or terminate the existence of any committee or committees, each committee to consist of one or more of the directors; (b) designate one or more directors as alternate members of any such committee who may replace any absent or disqualified member at any meeting of the committee; and (c) determine the extent to which each such committee shall have and may exercise the powers of the board of directors in the management of the business and affairs of the corporation, including the power to authorize the seal of the corporation to be affixed to all papers which require it and the power and authority to declare dividends, to authorize the issuance of stock, or to adopt a certificate of ownership and merger pursuant to Section 253 of the General Corporation Law of Delaware; excepting, however, such powers which by law, by the certificate of incorporation or by these by-laws they are prohibited from so delegating. In the absence or disqualification of any member of such committee and his alternate, if any, the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or disqualified member. Except as the board of directors may otherwise determine, any committee may make rules for the conduct of its business, but unless otherwise provided by the board or such rules, its business shall be conducted as nearly as may be in the same manner as is provided by these by-laws for the conduct of the business by the board of directors. Each committee shall keep regular minutes of its meetings and report the same to the board of directors upon request.
4.6. REGULAR MEETINGS. Regular meetings of the board of directors may be held without call or notice at such place within or without the State of Delaware and at such times as the board may from time to time determine, provided that notice of the first regular meeting following any such determination shall be given to absent directors. A regular meeting of the directors may be held without call or notice immediately after and at the same place as the annual meeting of the stockholders.
4.7. SPECIAL MEETINGS. Special meetings of the board of directors may be held at any time and at any place within or without the State of Delaware designated in the notice of the meeting, when called by the chairman of the board, or by one-third or more in number of the directors, reasonable notice thereof being given to each director by the secretary or by the chairman of the board or any one of the directors calling the meeting.
4.8. NOTICE. It shall be reasonable and sufficient notice to a director to send notice by mail at least forty-eight hours or by facsimile or electronic message at least twenty-four hours before the meeting addressed to him at his usual or last known business or residence address or to give notice to him in person or by telephone at least twenty-four hours before the meeting. Notice of a meeting need not be given to any director if a written waiver of notice, executed by him before or after the meeting, is filed with the records of the meeting, or to any director who attends the meeting without protesting prior thereto or at its commencement the lack of notice to him. Neither notice of a meeting nor a waiver of a notice need specify the purposes of the meeting.
4.9. QUORUM. Except as may be otherwise provided by law, by the certificate of incorporation or by these by-laws, at any meeting of the directors a majority of the directors then in office shall constitute a quorum; a quorum shall not in any case be less than one-third of the total number of directors constituting the whole board. Any meeting may be adjourned from time to time by a majority of the votes cast upon the question, whether or not a quorum is present, and the meeting may be held as adjourned without further notice.
4.10. ACTION BY VOTE. Except as may be otherwise provided by law, by the certificate of incorporation or by these by-laws, when a quorum is present at any meeting the vote of a majority of the directors present shall be the act of the board of directors.
4.11. ACTION WITHOUT A MEETING. Any action required or permitted to be taken at any meeting of the board of directors or a committee thereof may be taken without a meeting if all the members of the board or of such committee, as the case may be, consent thereto in writing, and such writing or writings are filed with the records of the meeting of the board or of such committee. Such consent shall be treated for all purposes as the act of the board or of such committee, as the case may be.
4.12. COMPENSATION. In the discretion of the board of directors, each director may be paid such fees for his services as director and be reimbursed for his reasonable expenses incurred in the performance of his duties as director as the board of directors from time to time may determine. Nothing contained in this Section shall be construed to preclude any director from serving the corporation in any other capacity and receiving reasonable compensation therefor.
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4.13. INTERESTED DIRECTORS AND OFFICERS.
(a) No contract or transaction between the corporation and one or more of its directors or officers, or between the corporation and any other corporation, partnership, association, or other organization in which one or more of the corporation’s directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the board or committee thereof which authorizes the contract or transaction, or solely because his or their votes are counted for such purpose, if:
(1) The material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to the board of directors or the committee, and the board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or
(2) The material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or
(3) The contract or transaction is fair as to the corporation as of the time it is authorized, approved or ratified, by the board of directors, a committee thereof, or the stockholders.
(b) Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board of directors or of a committee which authorizes the contract or transaction.
4.14. Each member of the Board of Directors shall have obtained a bachelors degree from a college or university that is accredited by a company or institution recognized by the U.S. Secretary of Education for accrediting activities
SECTION 5
Officers and Agents
5.1. ENUMERATION; QUALIFICATION. The officers of the corporation shall be a chairman of the board, a treasurer, a secretary and such other officers, if any, as the board of directors from time to time may in its discretion elect or appoint including without limitation a vice-chairman of the board, one or more vice presidents and a controller. The corporation may also have such agents, if any, as the board of directors from time to time may in its discretion choose. Any officer may be, but none except the chairman and any vice-chairman of the board need be, a director or stockholder. Any two or more offices may be held by the same person. Any officer may be required by the board of directors to secure the faithful performance of his duties to the corporation by giving bond in such amount and with sureties or otherwise as the board of directors may determine.
5.2. POWERS. Subject to law, to the certificate of incorporation and to the other provisions of these by-laws, each officer shall have, in addition to the duties and power herein set forth, such duties and powers as are commonly incident to his office and such additional duties and powers as the board of directors may from time to time designate.
5.3. ELECTION. The officers may be elected to the board of directors at their first meeting following the annual meeting of the stockholders or at any other time. At any time or from time to time the directors may delegate to any officers their power to elect or appoint any other officer or any agents.
5.4. TENURE. Each officer shall hold office until the first meeting of the board of directors following the next annual meeting of the stockholders and until his respective successor is chosen and qualified unless a shorter period shall have been specified by the terms of his election or appointment, or in each case until he sooner dies, resigns, is removed or becomes disqualified. Each agent shall retain his authority at the pleasure of the directors, or the officer by whom he was appointed or the officer who then holds agent appointive power.
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5.5. CHAIRMAN AND VICE-CHAIRMAN OF THE BOARD OF DIRECTORS. Except as otherwise voted by the directors, the chairman of the board shall be the chief executive officer of the corporation, he shall preside at all meetings of the stockholders and directors at which he is present and shall have such other powers and duties as the board of directors, executive committee or any other duly authorized committee shall from time to time designate.
Except as otherwise voted by the directors, the vice-chairman of the board, if any is elected or appointed, shall assume the duties and powers of the chairman of the board in his absence and shall otherwise have such duties and powers as shall be designated from time to time by the board of directors.
5.6. VICE PRESIDENTS. Any vice presidents shall have such duties and powers as shall be designated from time to time by the board of directors or by the chairman of the board.
5.7. TREASURER AND ASSISTANT TREASURERS. Except as otherwise voted by the directors, the treasurer shall be the chief financial officer of the corporation and shall be in charge of its funds and valuable papers, and shall have such other duties and powers as may be designated from time to time by the board of directors or by the chairman of the board. If no controller is elected, the treasurer shall also have the duties and powers of the controller.
Any assistant treasurers shall have such duties and powers as shall be designated from time to time by the board of directors, the chairman of the board or the treasurer.
5.8. CONTROLLER AND ASSISTANT CONTROLLERS. If a controller is elected, he shall be the chief accounting officer of the corporation and shall be in charge of its books of account and accounting records, and of its accounting procedures. He shall have such other duties and powers as may be designated from time to time by the board of directors, the chairman of the board or the treasurer.
Any assistant controller shall have such duties and powers as shall be designated from time to time by the board of directors, the chairman of the board, the treasurer or the controller.
5.9. SECRETARY AND ASSISTANT SECRETARIES. The secretary shall record all proceedings of the stockholders, of the board of directors and of committees of the board of directors in a book or series of books to be kept therefor and shall file therein all writings of, or related to action by stockholder or director consent. In the absence of the secretary from any meeting, an assistant secretary, or if there be none or he is absent, a temporary secretary chosen at the meeting, shall record the proceedings thereof. Unless a transfer agent has been appointed the secretary shall keep or cause to be kept the stock and transfer records of the corporation, which shall contain the names and record addresses of all stockholders and the number of shares registered in the name of each stockholder. He shall have such other duties and powers as may from time to time be designated by the board of directors or the chairman of the board.
Any assistant secretaries shall have such duties and powers as shall be designated from time to time by the board of directors, the chairman of the board or the secretary.
SECTION 6
Resignations and Removals
6.1. Any director or officer may resign at any time by delivering his resignation in writing to the chairman of the board or the secretary or to a meeting of the board of directors. Such resignation shall be effective upon receipt unless specified to be effective at some other time, and without in either case the necessity of its being accepted unless the resignation shall so state. A director (including persons elected by directors to fill vacancies in the board) may be removed from office with or without cause by the vote of the holders of a majority of the shares issued and outstanding and entitled to vote in the election of directors. The board of directors may at any time remove any officer either with or without cause. The board of directors may at any time terminate or modify the authority of any agent. No director or officer resigning and (except where a right to receive compensation shall be expressly provided in a duly authorized written agreement with the corporation) no director or officer removed, shall have any right to any compensation as such director or officer for any period following his resignation or removal, or any right to damages on account of such removal, whether his compensation be by the month or by the year or otherwise; unless in the case of a resignation, the directors, or in the case of a removal, the body acting on the removal, shall in their or its discretion provide for compensation.
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SECTION 7
Vacancies
7.1. If the office of the chairman of the board or the treasurer or the secretary becomes vacant, the directors may elect a successor by vote of a majority of the directors then in office. If the office of any other officer becomes vacant, any person or body empowered to elect or appoint that officer may choose a successor. Each such successor shall hold office for the unexpired term, and in the case of the chairman of the board, the treasurer and the secretary until his successor is chosen and qualified, or in each case until he sooner dies, resigns, is removed or becomes disqualified. Any vacancy of a directorship shall be filled as specified in Section 4.4 of these by-laws.
SECTION 8
Capital Stock
8.1. STOCK CERTIFICATES. Shares of the corporation’s stock may be certificated or uncertificated, as provided by the General Corporation Law of the State of Delaware. All certificates of stock of the corporation shall be numbered and shall be entered in the books of the corporation as they are issued. They shall exhibit the holder’s name and the number, class and designation of the series, if any, of the shares held and shall be signed by the Chairman or a Vice Chairman or the President or a Vice President and by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed on such certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if he were such officer, transfer agent, or registrar at the time of its issue.
8.2. LOSS OF CERTIFICATES. In the case of the alleged theft, loss, destruction or mutilation of a certificate of stock, a duplicate certificate may be issued in place thereof, upon such terms, including receipt of a bond sufficient to indemnify the corporation against any claim or account thereof, as the board of directors may prescribe.
SECTION 9
Transfer of Shares of Stock
9.1. TRANSFER ON BOOKS. Transfers of stock shall be made on the books of the corporation only by the record holder of such stock, or by an attorney lawfully constituted in writing, and, in the case of stock represented by a certificate, subject to the restrictions, if any, stated or noted on the stock certificate, upon surrender to the corporation or its transfer agent of the certificate therefore properly endorsed or accompanied by a written assignment and power of attorney properly executed, with necessary transfer stamps affixed, and with such proof of the authenticity of signature as the board of directors or the transfer agent of the corporation may reasonably require. Except as may be otherwise required by law, by the certificate of incorporation or by these by-laws, the corporation shall be entitled to treat the record holder of stock as shown on its books as the owner of such stock for all purposes, including the payment of dividends and the right to receive notice and to vote or to give any consent with respect thereto and to be held liable for such calls and assessments, if any, as may lawfully be made thereon, regardless of any transfer, pledge or other disposition of such stock until the shares have been properly transferred on the books of the corporation.
9.2 RECORD DATE AND CLOSING TRANSFER BOOKS. In order that the corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distributions or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the board of directors may fix, in advance, a record date, which shall not be more than sixty nor less than ten days (or such longer period as may be required by law) before the date of such meeting, nor more than sixty days prior to any other action.
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If no record date is fixed:
(a) The record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.
(b) The record date for determining stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action by the board of directors is necessary, shall be the day on which the first written consent is expressed.
(c) The record date for determining stockholders for any other purpose shall be at the close of business on the day on which the board of directors adopts the resolution relating thereto.
A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the board of directors may fix a new record date for the adjourned meeting.
SECTION 10
Indemnification of Directors and Officers
10.1. RIGHT TO INDEMNIFICATION. Each director or officer of the corporation who was or is a party or is threatened to be made a party to or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he or she, or a person of whom he or she is the legal representative, is or was a director or officer of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity or in any other capacity while serving as a director, officer, employee or agent, shall be indemnified and held harmless by the corporation to the fullest extent permitted by the laws of Delaware, as the same exist or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than said law permitted the corporation to provide prior to such amendment), against all costs, charges, expenses, liabilities and losses (including attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of his or her heirs, executors and administrators: provided however, that except for any proceeding seeking to enforce or obtain payment under any right to indemnification by the corporation, the corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if the corporation has joined in or consented to the initiation of such proceeding (or part thereof). The corporation may, by action of its Board of Directors, either on a general basis or as designated by the Board of Directors, provide indemnification to employees and agents of the corporation, and to directors, officers, employees and agents of the Company’s subsidiaries, with the same scope and effect as the foregoing indemnification of the same scope and effect as the foregoing indemnification of directors and officers. Notwithstanding anything in this Section 10 to the contrary, no person shall be entitled to indemnification pursuant to this Section on account of any suit in which judgment is rendered against such person for an accounting of profits made from the purchase and sale by such person of securities of the corporation pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934.
10.2. NON-EXCLUSIVITY OF RIGHTS. The right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Section 10 shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, provision of the certificate of incorporation, by-law, agreement, vote of stockholders or disinterested directors or otherwise. Each person who is or becomes a director or officer of the corporation shall be deemed to have served or to have continued to serve in such capacity in reliance upon the indemnity provided in this Section 10.
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10.3. INSURANCE. The corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the corporation or another corporation, partnership, joint venture, trust or other enterprise against any such expense, liability or loss, whether or not the corporation would have the power to indemnify such person against such expense, liability or loss under the General Corporation Law of Delaware.
10.4. EXPENSES AS A WITNESS. To the extent that any director, officer, employee or agent of the corporation is by reason of such position, or a position with another entity at the request of the corporation, a witness in any action, suit or proceeding, he or she shall be indemnified against all costs and expenses actually and reasonably incurred by him or her on his or her behalf in connection therewith.
10.5. INDEMNITY AGREEMENTS. The corporation may enter into indemnity agreements with the persons who are members of its board of directors from time to time, and with such officers, employees and agents of the corporation and with such officers, directors, employees and agents of subsidiaries as the board may designate, such indemnity agreements to provide in substance that the corporation will indemnify such persons as contemplated by this Section 10, and to include any other substantive or procedural provisions regarding indemnification as are not inconsistent with the General Corporation Law of Delaware. The provisions of such indemnity agreements shall prevail to the extent that they limit or condition or differ from the provisions of this Section 10.
10.6. DEFINITION OF CORPORATION. For purposes of this Section 10 reference to “the corporation” includes all constituent corporations absorbed in a consolidation or merger as well as the resulting or surviving corporation so that any person who is or was a director or officer of such a constituent corporation shall stand in the same position under the provisions of this Section with respect to the resulting or surviving corporation as he would if he had served the resulting or surviving corporation in the same capacity.
SECTION 11
Corporate Seal
11.1. The seal of the corporation shall, subject to alteration by the directors, consist of a flat-faced circular die with the word “Delaware” together with the name of the corporation and the year of its organization, cut or engraved thereon. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise.
SECTION 12
Execution of Papers
12.1. Except as the board of directors may generally or in some particular cases authorize the execution thereof in some other manner, all deeds, leases, transfers, contracts, bonds, notes, checks, drafts and other obligations made, accepted or endorsed by the corporation shall be signed by the chairman of the board or by one of the vice presidents or by the treasurer.
SECTION 13
Fiscal Year
13.1. Except as from time to time otherwise provided by the board of directors, the fiscal year of the corporation shall end on the 31st day of December of each year.
SECTION 14
Amendments
14.1. These by-laws may be made, altered, amended or repealed by vote of a majority of the directors in office or by vote of a majority of the stock outstanding and entitled to vote. Any by-law, whether made, altered, amended or repealed by the stockholders or directors, may be altered, amended or reinstated, as the case may be, by either the stockholders or by the directors as hereinbefore provided.
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EXHIBIT 4
SUBSCRIPTION AGREEMENT
Buscar Company
This Subscription Agreement relates to the sale of up to ___________ Offered Shares of Buscar Company, a Nevada corporation (the "Company"), pursuant to the Company's offering under Tier 2 of Regulation A promulgated under the Securities Act of 1933, as amended ("Securities Act").
To purchase Offered Shares of the Company, an investor you must complete and execute this Subscription Agreement and, then, deliver the completed Subscription Agreement, along with (1) a government-issued form of picture identification (e.g., passport or driver license), or organizational documents if the investor is an entity, and (2) a completed IRS Form W-9 (collectively, the "Subscription Documents"), to the Company as directed below.
In connection with your execution and delivery of this Subscription Agreement, you are required to pay the entire purchase price for the purchased Offered Shares at a price of $___________ per share.
You are required to deliver the Subscription Documents to the Company by e-mail to: info@buscarcompany.com
Send wires to or make checks payable to: “Buscar Company.”
You should examine the suitability of this type of investment in the context of your needs, investment objectives and financial capabilities and you should make an independent investigation and decision as to suitability and as to the risk and potential gain involved with the Company. You are encouraged to consult your attorney, accountant, financial consultant or other business or tax advisor regarding the risks and merits of the proposed investment.
Information provided herein will be kept confidential, except to the extent disclosure may be required under any federal or state laws. However, by executing this Subscription Agreement, you agree that the Company may present the Subscription Documents to its attorneys or such other parties as it, in its sole discretion, deems appropriate to assure itself that the proposed offer and sale of the Offered Shares of the Company will not result in a violation of (A) the registration provisions of the Securities Act, (B) the securities or "blue sky" laws of any state or (C) any anti-money laundering statute or regulation.
The decision to accept or reject this Subscription Agreement shall be made in the sole discretion of Buscar Company.
INVESTOR INFORMATION
Name of Investor _________________________________________
SSN or EIN ______________________________________________
Street Address ___________________________________________
City ___________________________________________________
State __________________________________________________
Zip Code _______________________________________________
Phone _________________________________________________
E-mail _________________________________________________
State/Nation of Residency __________________________________
Name and Title of Authorized Representative, if investor is an entity or custodial account
_______________________________________________
Type of Entity or Custodial Account (IRA, Keogh, corporation, partnership, trust, limited liability company, etc.)
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Jurisdiction of Organization __________________________________________
Date of Organization _______________________________________________
Account Number __________________________________________________
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The Company is offering _________ Offered Shares at a price of $___________ per share pursuant to its Form 1-A ("Offering Circular") filed with the Securities and Exchange Commission (the "SEC") under Tier 1 of Regulation A promulgated under the Securities Act.
1. The undersigned hereby subscribes for the dollar amount ("Subscription Amount") and number of Offered Shares of Buscar Company (the Company) indicated on the signature page hereto.
2. The Offered Shares will be held by the undersigned as (check one):
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LLC |
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If the Offered Shares are intended to be held as Community Property, as Tenants-In-Common or as Joint Tenancy, then each party (owner) must execute this Subscription Agreement.
If the investor is an entity (corporation, partnership, LLC or trust), then additional organizational documentation and proof of authorization to purchase Offered Shares may be required by the Company. Such additional documentation may include, without limitation: articles/certificate of incorporation, bylaws, operating/partnership agreements, certificates of trust or resolutions to invest.
3. To induce the Company to accept this Subscription Agreement, you hereby agree and represent that:
(a) You have delivered the Subscription Amount, concurrently with your delivering this Subscription Agreement to the Company, by check or by bank wire or by electronic funds transfer via ACH.
(b) Within five (5) days after receipt of a written request from the Company, you shall provide such information and execute and deliver such additional documents as the Company may reasonably request to comply with any and all laws and ordinances to which the Company may be subject, including the securities laws of the United States or any other applicable jurisdiction.
(c) The Company has entered into, and from time to time may enter into, separate subscription agreements with other investors for the sale of Offered Shares to such other investors. The sale of Offered Shares to such other investors and this sale of the Offered Shares shall be separate sales and this Subscription Agreement and the other subscription agreements shall be separate agreements.
(d) You understand the meaning and legal consequences of, and that the Company intends to rely upon, the representations and warranties contained in Section 4 hereof, and you hereby agree to indemnify and hold harmless the Company and each any officer, employee, agent or affiliate thereof from and against any and all loss, damage or liability due to or arising out of your breach of any representation or warranty.
4. You hereby further represent, warrant, acknowledge and agree that:
(a) The information provided by you is true and correct in all respects as of the date hereof and you hereby agree to notify promptly the Company and supply corrective information to the Company if, prior to the consummation of your investment in the Company, any of such information becomes inaccurate or incomplete.
(b) If an individual, you are over 21 years of age, and the address set forth above is your true residence and domicile, and you have no present intention of becoming a resident or domiciliary of any other state or jurisdiction. If a corporation, trust, partnership or other entity, your principal place of business is located at the address set forth above.
(c) You have had an opportunity to ask questions of, and receive answers from, the Company, or a person or persons acting on its behalf, concerning the Company and the terms and conditions of this investment, and all such questions have been answered to your full satisfaction of Investor.
(d) Except as set forth in this Subscription Agreement, no representations or warranties have been made to you by the Company or any officer, agent, employee or affiliate thereof.
(e) You have knowledge and experience in financial and business matters such that you are capable of evaluating the merits and risks of an investment in the Company and making an informed investment decision with respect thereto. You have had the opportunity to consult your own advisers with respect to your proposed investment in the Company.
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(f) You are not entering into this Subscription Agreement in any manner as a representative of a charitable remainder unitrust or a charitable remainder trust.
(g) You have either (1) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (2) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.
(h) You have the financial ability to bear the economic risk of your investment, including a complete loss thereof, have adequate means for providing for your current needs and possible contingencies and have no need for liquidity in your investment.
(i) You are acquiring Offered Shares for your own account.
(j) You acknowledge and understand that:
(1) the Offered Shares are a speculative investment and involve a substantial degree of risk;
(2) the Company does not have a significant financial or operating history; and
(3) the Offered Shares are being offered pursuant to Regulation A under the Securities Act.
(k) You have carefully reviewed and understand the Offering Circular, as amended, and exhibits included therewith.
(l) If the investor is an entity, you represent that:
(1) the entity was not formed for the purpose of investing in the Company;
(2) the entity is not investing more than 40% of its total assets in the Company;
(3) each of the entity's beneficial owners participates in investments made by the entity pro rata in accordance with its interest in the entity and, accordingly, the entity's beneficial owners cannot opt-in or opt-out of investments made by the entity; and
(4) the entity's beneficial owners did not and will not contribute additional capital (other than previously committed capital) for the purpose of purchasing the Offered Shares. If the investor is an entity in which a holder of an interest in such entity may decide whether or how much to invest by means of such entity in various investment vehicles including the Company, then you shall notify the Company as to the number of holders of interests in the entity, the number of holders of interests in the entity that hold interests in the Company through the entity and any changes to either such number.
(m) You represent and warrant that (1) the Offered Shares are to be purchased with funds that are from legitimate sources in connection with your regular business activities and which do not constitute the proceeds of criminal conduct; (2) the Offered Shares are not being acquired, and will not be held, in violation of any applicable laws; (3) you are not listed on the list of Specially Designated Nationals and Blocked Persons maintained by the United States Office of Foreign Assets Control ("OFAC"); and (4) you are not a senior foreign political figure, or any immediate family member close associate of a senior foreign political figure.
(n) If the investor is an individual retirement account, qualified pension, profit sharing or other retirement plan, or governmental plans or units (all such entities are herein referred to as a "Retirement Trust"), you represent that the investment in the Company by the Retirement Trust has been authorized by the appropriate person or persons and that the Retirement Trust has consulted its counsel with respect to such investment and you represent that you has not relied on any advice of the Company or any person affiliated with the Company in making your decision to purchase the Offered Shares.
5. It is understood that this Subscription Agreement is not binding on the Company, until accepted by the Company. The Company may accept or reject this Subscription Agreement in whole or in part, in its sole discretion.
6. The Company reserves the right to request such information as is necessary to verify your identity. You shall, promptly on demand, provide such information and execute and deliver such documents as the Company may request to verify the accuracy of your representations and warranties herein or to comply with the USA PATRIOT Act of 2001, as amended, certain anti-money laundering laws or any other law or regulation to which the Company may be subject. In addition, by executing this Subscription Agreement, you authorize the Company to provide the Company's legal counsel and any other appropriate third party with your information, until the authorization is revoked by you in writing to the Company.
7. The Company represents and warrants to you that: (a) The Company is duly formed and validly existing in good standing as a corporation under the laws of the State of Nevada, and has all requisite power and authority to carry on its business as now conducted. (b) The execution, delivery and performance by the Company of this Subscription Agreement have been authorized by all necessary action on behalf of the Company, and this Subscription Agreement is a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms.
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8. All documents, notices and other communications to be delivered hereunder by you shall be sent to the Company at the address set forth above; notices and other communications to be delivered hereunder by the Company shall be sent to you at your address set forth above.
9. This Subscription Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings of the parties in connection therewith. No covenant, representation or condition not expressed in this Subscription Agreement shall affect, or be effective to interpret, change or restrict, the express provisions of this Subscription Agreement.
10. This Subscription Agreement is not transferable or assignable by you. All notices or other communications to be given or made hereunder shall be in writing and shall be delivered personally or mailed, postage prepaid, to you or to the Company, as the case may be, at the respective addresses set forth elsewhere herein. This Subscription Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without regard to its principles of conflicts of laws. All nouns and pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the person or persons may require.
IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the date set forth below.
Dated: _____________________________
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INDIVIDUAL INVESTOR |
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(Subscription Amount) |
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(Printed Name) |
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(Number of Offered Shares Subscribed) |
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CORPORATION/LLC/TRUST INVESTOR |
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(Name of Corporation/LLC/Trust) |
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(Subscription Amount) |
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(Signature) |
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(Number of Offered Shares Subscribed) |
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(Printed Name) |
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PARTNERSHIP INVESTOR |
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(Name of Partnership) |
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(Subscription Amount) |
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(Signature) |
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(Number of Offered Shares Subscribed) |
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(Printed Name) |
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(Title) |
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COMPANY ACCEPTANCE
The foregoing subscription for ___________________ Offered Shares, a Subscription Amount of $___________________, is hereby accepted on behalf of Buscar Company, a Nevada corporation, this ____ day of _______________, 20___.
WEBB INTERACTIVE SERVICES
By: __________________________
Name: ________________________
Title: _________________________
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EXHIBIT 11
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1100 N. Tustin Avenue, 2nd floor Anaheim, CA 92807 Office: (714) 238-0000 E-Fax: (714) 451-4160 www.bycpas.com |
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors Buscar Company
We hereby consent to the inclusion in this Registration Report on Form 1-A of our report dated July 14, 2017 relating to the financial statements of Buscar Company for the year ended March 31, 2017, which is contained in Form 10-K, and of our report dated July 14, 2017.
/s/ Benjamin & Young, LLP
February 22, 2018
Anaheim, California
EXHIBIT 12
February 22, 2018
Buscar Company
1624 Market St Suite 202-90862 Denver, CO 80202
Re: Offering Statement on Form 1-A
Gentlemen:
We are acting as counsel to Buscar Company, a Nevada corporation (the Company), in connection with the proposed sale by the Company of up to 2,000,000 (the Offered Shares) of its common stock, par value $0.00001 per share (the Common Stock) for a purchase price of $1.00 per Offered Share by the Company pursuant to an offering (the Offering) to be qualified with the Securities and Exchange Commission on Form 1-A under Regulation A issued under the Securities Act of 1933, as amended, (the Act).
In connection therewith, we have examined originals, or copies certified or otherwise identified to our satisfaction, of such documents, corporate records and other instruments as we have deemed necessary for the purposes of this opinion, including (i) the Form 1-A; (ii) the corporate and organizational documents of the Company, including the Articles of Incorporation of the Company, as amended to date; (iii) minutes and records of the proceedings of the Company with respect to the offer and sale of the Offered Shares, (iv) the Regulation A Offering Statement on Form 1-A (the Offering Statement) covering the sale of the Offered Shares, and (v) public records of the Nevada Secretary of State indicating the Company is active and in good standing under the Nevada Business Corporation Code.
For purposes of this opinion, we have assumed the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as copies and the authenticity of the originals of all documents submitted to us as copies. We have also assumed the legal capacity of all natural persons, the genuineness of the signatures of persons signing all documents in connection with which this opinion is rendered, the authority of such persons signing on behalf of the parties thereto other than the Company and the due authorization, execution and delivery of all documents by the parties thereto other than the Company. We have not independently established or verified any facts relevant to the opinions expressed herein, but have relied upon statements and representations of officers and other representatives of the Company and others.
Based upon and subject to the foregoing qualifications, assumptions and limitations and the further limitations set forth below, we are of the opinion that:
The sale of the Offered Shares has been duly authorized, and, when (i) the Offering Statement becomes qualified under the Act, and (ii) the Offered Shares have been issued and sold and the consideration therefor has been received therefore by the Company pursuant to the terms of the Offering Statement, the Offered Shares will be validly issued, fully paid and non-assessable.
Our opinion expressed above is subject to the qualification that we express no opinion as to the applicability of, compliance with, or effect of any laws except the Nevada Revised Statutes (including the statutory provisions and reported judicial decisions interpreting the foregoing).
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We do not find it necessary, for the purposes of this opinion, and accordingly we do not purport to cover herein, the application of the securities, or Blue Sky, laws of the various states to the issuance and sale of the Offered Shares.
This opinion is limited to the specific issues addressed herein, and no opinion may be inferred or implied beyond that expressly stated herein. This opinion speaks only as of the date that the Offering Statement becomes qualified under the Act, and we assume no obligation to revise or supplement this opinion after the date of qualification should the Nevada Revised Statutes be changed by legislative action, judicial decision or otherwise after the date hereof.
We hereby consent to the filing of this opinion as Exhibit 12.1 to the Offering Statement and to the reference to our firm under the caption “Legal Matters” in the Offering Circular constituting a part of the Offering Statement. In giving such consent, we do not thereby admit that we are included in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.
Sincerely,
/s/ Nathaniel Reinking
Nathaniel M. Reinking, Esq.
4301 S. Orchard Lane
Bloomington, IN 47403
nmr@reinkinglaw.com
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