Form 1-A Issuer Information UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 1-A
REGULATION A OFFERING STATEMENT
UNDER THE SECURITIES ACT OF 1933
OMB APPROVAL

FORM 1-A

OMB Number: 3235-0286


Estimated average burden hours per response: 608.0

1-A: Filer Information

Issuer CIK
0001158702
Issuer CCC
XXXXXXXX
DOS File Number
Offering File Number
024-11775
Is this a LIVE or TEST Filing? LIVE TEST
Would you like a Return Copy?
Notify via Filing Website only?
Since Last Filing?

Submission Contact Information

Name
Phone
E-Mail Address

1-A: Item 1. Issuer Information

Issuer Infomation

Exact name of issuer as specified in the issuer's charter
Transnational Group, Inc.
Jurisdiction of Incorporation / Organization
NEVADA
Year of Incorporation
1999
CIK
0001158702
Primary Standard Industrial Classification Code
SERVICES-PERSONAL SERVICES
I.R.S. Employer Identification Number
76-0603927
Total number of full-time employees
0
Total number of part-time employees
1

Contact Infomation

Address of Principal Executive Offices

Address 1
2701 Thanksgiving Way
Address 2
Suite 100
City
Lehi
State/Country
UTAH
Mailing Zip/ Postal Code
84043
Phone
940-367-6154

Provide the following information for the person the Securities and Exchange Commission's staff should call in connection with any pre-qualification review of the offering statement.

Name
Eric Newlan
Address 1
Address 2
City
State/Country
Mailing Zip/ Postal Code
Phone

Provide up to two e-mail addresses to which the Securities and Exchange Commission's staff may send any comment letters relating to the offering statement. After qualification of the offering statement, such e-mail addresses are not required to remain active.

Financial Statements

Industry Group (select one) Banking Insurance Other

Use the financial statements for the most recent period contained in this offering statement to provide the following information about the issuer. The following table does not include all of the line items from the financial statements. Long Term Debt would include notes payable, bonds, mortgages, and similar obligations. To determine "Total Revenues" for all companies selecting "Other" for their industry group, refer to Article 5-03(b)(1) of Regulation S-X. For companies selecting "Insurance", refer to Article 7-04 of Regulation S-X for calculation of "Total Revenues" and paragraphs 5 and 7 of Article 7-04 for "Costs and Expenses Applicable to Revenues".

Balance Sheet Information

Cash and Cash Equivalents
$ 90900.00
Investment Securities
$ 0.00
Total Investments
$
Accounts and Notes Receivable
$ 0.00
Loans
$
Property, Plant and Equipment (PP&E):
$ 0.00
Property and Equipment
$
Total Assets
$ 7590900.00
Accounts Payable and Accrued Liabilities
$ 100.00
Policy Liabilities and Accruals
$
Deposits
$
Long Term Debt
$ 0.00
Total Liabilities
$ 100.00
Total Stockholders' Equity
$ 7590800.00
Total Liabilities and Equity
$ 7590900.00

Statement of Comprehensive Income Information

Total Revenues
$ 0.00
Total Interest Income
$
Costs and Expenses Applicable to Revenues
$ 509200.00
Total Interest Expenses
$
Depreciation and Amortization
$ 0.00
Net Income
$ -509200.00
Earnings Per Share - Basic
$ -0.00
Earnings Per Share - Diluted
$ -0.00
Name of Auditor (if any)

Outstanding Securities

Common Equity

Name of Class (if any) Common Equity
Common Stock
Common Equity Units Outstanding
115100000
Common Equity CUSIP (if any):
893775205
Common Equity Units Name of Trading Center or Quotation Medium (if any)
OTC Pink

Preferred Equity

Preferred Equity Name of Class (if any)
Series A
Preferred Equity Units Outstanding
10000000
Preferred Equity CUSIP (if any)
000000n/a
Preferred Equity Name of Trading Center or Quotation Medium (if any)
none

Debt Securities

Debt Securities Name of Class (if any)
none
Debt Securities Units Outstanding
0
Debt Securities CUSIP (if any):
000000n/a
Debt Securities Name of Trading Center or Quotation Medium (if any)
none

1-A: Item 2. Issuer Eligibility

Issuer Eligibility

Check this box to certify that all of the following statements are true for the issuer(s)

1-A: Item 3. Application of Rule 262

Application Rule 262

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.

1-A: Item 4. Summary Information Regarding the Offering and Other Current or Proposed Offerings

Summary Infomation

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
50000000
Number of securities of that class outstanding
115100000

The information called for by this item below may be omitted if undetermined at the time of filing or submission, except that if a price range has been included in the offering statement, the midpoint of that range must be used to respond. Please refer to Rule 251(a) for the definition of "aggregate offering price" or "aggregate sales" as used in this item. Please leave the field blank if undetermined at this time and include a zero if a particular item is not applicable to the offering.

Price per security
$ 0.0300
The portion of the aggregate offering price attributable to securities being offered on behalf of the issuer
$ 1500000.00
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)
$ 1500000.00

Anticipated fees in connection with this offering and names of service providers

Underwriters - Name of Service Provider
Underwriters - Fees
$
Sales Commissions - Name of Service Provider
Sales Commissions - Fee
$
Finders' Fees - Name of Service Provider
Finders' Fees - Fees
$
Audit - Name of Service Provider
Audit - Fees
$
Legal - Name of Service Provider
Newlan Law Firm, PLLC
Legal - Fees
$ 15000.00
Promoters - Name of Service Provider
Promoters - Fees
$
Blue Sky Compliance - Name of Service Provider
State Regulators
Blue Sky Compliance - Fees
$ 5000.00
CRD Number of any broker or dealer listed:
Estimated net proceeds to the issuer
$ 1480000.00
Clarification of responses (if necessary)

1-A: Item 5. Jurisdictions in Which Securities are to be Offered

Jurisdictions in Which Securities are to be Offered

Using the list below, select the jurisdictions in which the issuer intends to offer the securities

Selected States and Jurisdictions
ALABAMA
ALASKA
ARIZONA
ARKANSAS
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
FLORIDA
GEORGIA
HAWAII
IDAHO
ILLINOIS
INDIANA
IOWA
KANSAS
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASSACHUSETTS
MICHIGAN
MINNESOTA
MISSISSIPPI
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NEW YORK
NORTH CAROLINA
NORTH DAKOTA
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTA
TENNESSEE
TEXAS
UTAH
VERMONT
VIRGINIA
WASHINGTON
WEST VIRGINIA
WISCONSIN
WYOMING
DISTRICT OF COLUMBIA
PUERTO RICO

Using the list below, select the jurisdictions in which the securities are to be offered by underwriters, dealers or sales persons or check the appropriate box

None
Same as the jurisdictions in which the issuer intends to offer the securities
Selected States and Jurisdictions

1-A: Item 6. Unregistered Securities Issued or Sold Within One Year

Unregistered Securities Issued or Sold Within One Year

None

Unregistered Securities Issued

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
TRANSNATIONAL GROUP, INC.
(b)(1) Title of securities issued
COMMON STOCK
(2) Total Amount of such securities issued
13639492
(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.
Services rendered, $.001 per share; board of directors determination
(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)).

Unregistered Securities Issued

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
TRANSNATIONAL GROUP, INC.
(b)(1) Title of securities issued
COMMON STOCK
(2) Total Amount of such securities issued
58000000
(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.
58,000 board of directors determination
(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)).

Unregistered Securities Issued

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
TRANSNATIONAL GROUP, INC.
(b)(1) Title of securities issued
COMMON STOCK
(2) Total Amount of such securities issued
3600000
(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.
Note exchange, $.0829 per share; board of directors determination
(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)).

Unregistered Securities Issued

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
TRANSNATIONAL GROUP, INC.
(b)(1) Title of securities issued
SERIES A PREFERRED STOCK
(2) Total Amount of such securities issued
10000000
(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.
Services rendered, $.001 per share; board of directors determination
(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)).

Unregistered Securities Issued

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
TRANSNATIONAL GROUP, INC.
(b)(1) Title of securities issued
SERIES B PREFERRED STOCK
(2) Total Amount of such securities issued
75000
(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.
Merger consideration, $.001 per share; board of directors determination
(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)).

Unregistered Securities Issued

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
TRANSNATIONAL GROUP, INC.
(b)(1) Title of securities issued
SERIES C PREFERRED STOCK
(2) Total Amount of such securities issued
1000
(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.
$.0075 per share; board of directors determination
(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)).

Unregistered Securities Act

(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
Section 4)a)(2)

Table of Contents

As filed with the Securities and Exchange Commission on March 7, 2022

File No. 024-11775

 

PART II - INFORMATION REQUIRED IN OFFERING CIRCULAR

 

Preliminary Offering Circular dated March 7, 2022

 

An offering statement pursuant to Regulation A relating to these securities has been filed with the United States Securities and Exchange Commission (the “SEC”). 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 SEC 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.

 

OFFERING CIRCULAR

 

Transnational Group, Inc.

50,000,000 Shares of Common Stock

 

By this Offering Circular, Transnational Group, Inc., a Nevada corporation, is offering for sale a maximum of 50,000,000 shares of its common stock (the “Offered Shares”), at a fixed price of $._____ [0.02-0.04] per share, pursuant to Tier 1 of Regulation A of the United States Securities and Exchange Commission (the “SEC”). A minimum purchase of $1,000 of the Offered Shares is required in this offering; any additional purchase must be in an amount of at least $500. This offering is being conducted on a best-efforts basis, which means that there is no minimum number of Offered Shares that must be sold by us for this offering to close; thus, we may receive no or minimal proceeds from this offering. All proceeds from this offering will become immediately available to us and may be used as they are accepted. Purchasers of the Offered Shares will not be entitled to a refund and could lose their entire investments. Please see the “Risk Factors” section, beginning on page 4, for a discussion of the risks associated with a purchase of the Offered Shares.

 

We estimate that this offering will commence on or around January 10, 2022; this offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering being qualified by the SEC or (c) the date on which this offering is earlier terminated by us, in our sole discretion. (See “Plan of Distribution”).

 

Title of
Securities Offered
  Number

of Shares

  Price to
Public
  Commissions (1)  Proceeds to
Company (2)
Common Stock  50,000,000  [$0.02-$0.04]  $-0-  $[1,000,000-2,000,000]

 

(1) We may offer the Offered Shares through registered broker-dealers and we may pay finders. However, information as to any such broker-dealer or finder shall be disclosed in an amendment to this Offering Circular.
(2) Does not account for the payment of expenses of this offering estimated at $20,000. See “Plan of Distribution.”

   

Our common stock is quoted in the over-the-counter under the symbol “TAMG” in the OTC Pink marketplace of OTC Link. On March 4, 2022, the closing price of our common stock was $0.0441 per share.

 

Investing in the Offered Shares is speculative and involves substantial risks, including the superior voting rights of our outstanding shares of Series A Preferred Stock, which preclude current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The Series A Preferred Stock has the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders. One of our directors, who controls the disposition of all outstanding shares of the Series A Preferred Stock, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares”).

 

THE SEC 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 SEC. HOWEVER, THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

The use of projections or forecasts in this offering is prohibited. No person is permitted to make any oral or written predictions about the benefits you will receive from an investment in Offered Shares.

 

No sale may be made to you in this offering if you do not satisfy the investor suitability standards described in this Offering Circular under “Plan of Distribution-State Law Exemption” and “Offerings to Qualified Purchasers-Investor Suitability Standards” (page 15). Before making any representation that you satisfy the established investor suitability standards, 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.

 

This Offering Circular follows the disclosure format of Form S-1, pursuant to the General Instructions of Part II(a)(1)(ii) of Form 1-A.

 

The date of this Offering Circular is ______, 2022.

 

   

 

 

TABLE OF CONTENTS

 

 

  Page
   
Cautionary Statement Regarding Forward-Looking Statements 1
Offering Circular Summary 2
Risk Factors 4
Dilution 12
Use of Proceeds 13
Plan of Distribution 14
Description of Securities 17
Business 19
Management’s Discussion and Analysis of Financial Condition and Results of Operations 22
Directors, Executive Officers, Promoters and Control Persons 24
Executive Compensation 26
Security Ownership of Certain Beneficial Owners and Management 28
Certain Relationships and Related Transactions 30
Legal Matters 30
Where You Can Find More Information 30
Index to Financial Statements F-1

 

 

 

 i 

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

The information contained in this Offering Circular includes some statements that are not historical and that are considered forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company; and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). These forward-looking statements express our expectations, hopes, beliefs and intentions regarding the future. In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words anticipates, believes, continue, could, estimates, expects, intends, may, might, plans, possible, potential, predicts, projects, seeks, should, will, would and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 

The forward-looking statements contained in this Offering Circular are based on current expectations and beliefs concerning future developments that are difficult to predict. We cannot guarantee future performance, or that future developments affecting our company will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

 

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties, along with others, are also described below in the Risk Factors section. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

 

 

 1 

 

 

OFFERING CIRCULAR SUMMARY

 

The following summary highlights material information contained in this Offering Circular. This summary does not contain all of the information you should consider before purchasing our common stock. Before making an investment decision, you should read this Offering Circular carefully, including the Risk Factors section and the unaudited consolidated financial statements and the notes thereto. Unless otherwise indicated, the terms we, us and our refer and relate to Transnational Group, Inc., a Nevada corporation, including its wholly-owned subsidiary, Bokoo TV, Inc., a Nevada corporation.

 

Our Company

 

Our company was incorporated on April 2, 1999, in the State of Nevada as Vitaminoverrun.com Corp. In August 2001, our corporate name changed to Apache Motor Corporation. In November 2005, our corporate name changed to Transnational Automotive Group, Inc. In January 2014, our corporate name changed to Transnational Group, Inc.

 

On September 14, 2020, Grassroots Advisory, LLC was appointed as Custodian of Transnational Group, Inc. (Case No. A-20-819126-B by the Nevada District Court, in Clark County, Nevada. On January 22, 2021, the custodianship was terminated.

 

On July 18, 2021, we completed the acquisition of On OTT Now, Inc. (“On OTT Now”), which merged with and into our operating subsidiary, Bokoo TV, Inc. (“Bokoo TV”).

From its inception in September 2019, On OTT Now had engaged in the development of a multilingual OTT video streaming platform and had planned to demonstrate such platform in an effort to attract investment and business partner interest.

 

Our company intends to develop and market our planned Bokoo TV over-the-top (OTT) video streaming platform, which is to offer an affordable TV-like experience with hundreds of live channels and On Demand services. Bokoo TV will be available on the internet, mobile devices, Roku, Amazon Fire, Samsung and other prominent smart-TV platforms. Our initial marketing will be focused on Diaspora communities within the United States. (See “Business”).

 

Offering Summary

 

Securities Offered 50,000,000 shares of common stock, par value $0.001 (the Offered Shares).
   
Offering Price $._____[$0.02-$.04] per Offered Share.
   

Shares Outstanding

Before This Offering

115,100,000 shares issued and outstanding as of the date hereof.
   

Shares Outstanding

After This Offering

165,100,000 shares issued and outstanding, assuming the sale of all of the Offered Shares hereunder.
   

Minimum Number of Shares

to Be Sold in This Offering

None.
   
Disparate Voting Rights Our outstanding shares of Series A Preferred Stock possess superior voting rights, which preclude current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The Series A Preferred Stock has the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders. One of our directors, Deepankar Katyal, controls the disposition of the Series A Preferred Stock. Mr. Katyal will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Security Ownership of Certain Beneficial Owners and Management”).

 

 

 

 2 

 

 

   
Investor Suitability Standards The Offered Shares may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.
   
Market for our Common Stock Our common stock is quoted in the over-the-counter market under the symbol “TAMG” in the OTC Pink marketplace of OTC Link.
   
Termination of this Offering This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering circular being qualified by the SEC and (c) the date on which this offering is earlier terminated by us, in our sole discretion.
   
Use of Proceeds We will apply the proceeds of this offering for sales and marketing expenses, software development, content acquisition, general and administrative expenses and working capital. (See “Use of Proceeds”).
   
Risk Factors An investment in the Offered Shares involves a high degree of risk and should not be purchased by investors who cannot afford the loss of their entire investments. You should carefully consider the information included in the Risk Factors section of this Offering Circular, as well as the other information contained in this Offering Circular, prior to making an investment decision regarding the Offered Shares.
   
Corporate Information Our principal executive offices are located at 2701 North Thanksgiving Way, Suite 100, Lehi, Utah 84043; our telephone number is 800-579-4364; our corporate website is located at www.transnational-group.com. No information found on our company’s website is part of this Offering Circular.

 

Continuing Reporting Requirements Under Regulation A

 

As a Tier 1 issuer under Regulation A, we will be required to file with the SEC a Form 1-Z (Exit Report Under Regulation A) upon the termination of this offering. We will not be required to file any other reports with the SEC following this offering.

 

However, during the pendency of this offering and following this offering, we intend to file quarterly and annual financial reports and other supplemental reports with OTC Markets, which will be available at www.otcmarkets.com.

 

All of our future periodic reports, whether filed with OTC Markets or the SEC, will not be required to include the same information as analogous reports required to be filed by companies whose securities are listed on the NYSE or NASDAQ, for example.

 

 

 

 

 

 3 

 

 

RISK FACTORS

 

An investment in the Offered Shares involves substantial risks. You should carefully consider the following risk factors, in addition to the other information contained in this Offering Circular, before purchasing any of the Offered Shares. The occurrence of any of the following risks might cause you to lose a significant part of your investment. The risks and uncertainties discussed below are not the only ones we face, but do represent those risks and uncertainties that we believe are most significant to our business, operating results, prospects and financial condition. Some statements in this Offering Circular, including statements in the following risk factors, constitute forward-looking statements. (See “Cautionary Statement Regarding Forward-Looking Statements”).

 

Risks Associated with the COVID-19 Pandemic

 

It is possible that the Coronavirus (“COVID-19”) pandemic could cause long-lasting stock market volatility and weakness, as well as long-lasting recessionary effects on the United States and/or global economies. Should the negative economic impact caused by the COVID-19 pandemic result in continuing long-term economic weakness in the United States and/or globally, our ability to expand our business would be severely negatively impacted. It is possible that our company would not be able to sustain during any such long-term economic weakness.

 

Risks Related to Our Company

 

We have incurred losses in prior periods, and losses in the future could cause the quoted price of our common stock to decline or have a material adverse effect on our financial condition, our ability to pay our debts as they become due, and on our cash flows. Our Bokoo TV OTT service has not yet generated revenues. While we reported a net profit of $146,171 (unaudited) for the six months ended August 31, 2021, such net profit was attributable to a one-time income event related to extinguishment of debt. For the three months ended August 31, 2021, we reported a net loss of $509,200 (unaudited) and, as of that date, we had an accumulated deficit of $18,211,089 (unaudited). Any losses in the future could cause the quoted price of our common stock to decline or have a material adverse effect on our financial condition, our ability to pay our debts as they become due, and on our cash flows.

 

There is doubt about our ability to continue as a viable business. We have not earned a profit from our operations during recent financial periods. There is no assurance that we will ever earn a profit from our operations in future financial periods.

 

We may be unable to obtain sufficient capital to implement our full plan of business. Currently, we do not have sufficient financial resources with which to establish our planned Bokoo TV OTT video streaming business. There is no assurance that we will be able to obtain sources of financing, including in this offering, in order to satisfy our working capital needs.

 

We do not have a successful operating history. We have never earned a profit from our planned Bokoo TV OTT video streaming business, which makes an investment in the Offered Shares speculative in nature. Because of this lack of operating success, it is difficult to forecast our future operating results. Additionally, our operations will be subject to risks inherent in the implementation of new business strategies, including, among other factors, efficiently deploying our capital, developing and implementing our marketing campaigns and strategies and developing greater awareness. Our performance and business prospects will suffer if we are unable to overcome the following challenges, among others:

 

  our dependence upon external sources for the financing of our operations, particularly given that there are concerns about our ability to continue as a going concern;
  our ability to execute our business strategies;
  our ability to manage our expansion, growth and operating expenses;
  our ability to finance our business;
  our ability to compete and succeed in highly a competitive industry; and
  future geopolitical events and economic crisis.

 

 

 

 4 

 

 

There are risks and uncertainties encountered by under-capitalized companies. As an under-capitalized company, we are unable to offer assurance that we will be able to overcome our lack of capital, among other challenges.

 

We may not be successful in establishing our Bokoo TV OTT video streaming business model. We are unable to offer assurance that we will be successful in establishing our Bokoo TV OTT video streaming business model. Should we fail to do so, you can expect to lose your entire investment in the Offered Shares.

 

We may never earn a profit in future financial periods. Because we lack a successful operating history, we are unable to offer assurance that we will ever earn a profit in future financial periods.

 

If we are unable to manage future expansion effectively, our business may be adversely impacted. In the future, we may experience rapid growth in our operations, which could place a significant strain on our company’s infrastructure, in general, and our internal controls and other managerial, operating and financial resources, in particular. If we are unable to manage future expansion effectively, our business would be harmed. There is, of course, no assurance that we will enjoy rapid development in our business.

 

We currently depend on the efforts of our sole executive officer; the loss of this person could disrupt our operations and adversely affect the further development of our business. Our success in establishing our Bokoo TV OTT video streaming business will depend, primarily, on the continued service of our sole officer, Barry Grunberger. The loss of service of Mr. Grunberger for any reason, could seriously impair our ability to execute our business plan, which could have a materially adverse effect on our business and future results of operations. We have not entered into employment agreement with Mr. Grunberger. We have not purchased any key-man life insurance.

 

If we are unable to recruit and retain key personnel, our business may be harmed. If we are unable to attract and retain key personnel, our business may be harmed. Our failure to enable the effective transfer of knowledge and facilitate smooth transitions with regard to our key employees could adversely affect our long-term strategic planning and execution.

 

Our planned Bokoo TV OTT video streaming business is not based on independent market studies. We have not commissioned any independent market studies with respect to the OTT video streaming industry. Rather, our plans for implementing our Bokoo TV OTT video streaming business and achieving profitability are based on the experience, judgment and assumptions of our management. If these assumptions prove to be incorrect, we may not be successful in establishing our business.

 

Our Board of Directors may change our policies without shareholder approval. Our policies, including any policies with respect to investments, leverage, financing, growth, debt and capitalization, will be determined by our Board of Directors or officers to whom our Board of Directors delegates such authority. Our Board of Directors will also establish the amount of any dividends or other distributions that we may pay to our shareholders. Our Board of Directors or officers to which such decisions are delegated will have the ability to amend or revise these and our other policies at any time without shareholder vote. Accordingly, our shareholders will not be entitled to approve changes in our policies, which policy changes may have a material adverse effect on our financial condition and results of operations.

 

Risks Related to Our Business

 

We may not be able to compete effectively in the OTT video streaming market. The OTT video streaming industry has enjoyed explosive growth in recent years and is an intensely competitive industry. Netflix, the leading video streaming content provider, YouTube TV and Hulu are among the most well-known of our competitors. Many of our competitors possess substantially greater resources, financial and otherwise, than does our company. No assurances can be given that we will be able to compete successfully in the OTT video streaming industry.

 

Introduction of new products and services by competitors could harm our competitive position and results of operations. The market for our planned Bokoo TV video streaming subscription service is characterized by intense competition, evolving industry standards, evolving business and distribution models, price cutting, with resulting downward pressure on gross margins, and price sensitivity on the part of consumers. Our future success will depend on our ability to gain recognition of the Bokoo TV brand name and customer loyalty, as well as our being able to anticipate and respond to emerging standards and other unforeseen changes. If we fail to satisfy such standards of operation, our operating results could suffer. Further, intra-industry consolidations may result in stronger competitors and may, therefore, also harm our future results of operations.

 

 

 

 5 

 

 

If our efforts to attract and retain subscribers to our planned Bokoo TV video streaming subscription service are not successful, our business will be adversely affected. Our ability to attract, and to continue to attract, subscribers to our planned Bokoo TV video streaming subscription service will depend, in part, on our ability consistently to provide subscribers with compelling content choices, as well as a quality experience for selecting and viewing Bokoo TV’s content. If consumers do not perceive Bokoo TV to be of value, we may not be able to attract and retain subscribers. If we do not grow as expected, we may not be able to adjust our expenditures commensurate with the lowered growth rate such that our margins, liquidity and results of operation may be adversely impacted. If we are unable to compete successfully with current and new competitors in both retaining existing subscribers and attracting new subscribers, our business will be adversely affected.

 

Changes in competitive offerings for entertainment video, including the potential rapid adoption of piracy-based video offerings, could adversely impact our business. The market for entertainment video is intensely competitive and subject to rapid change. Through new and existing distribution channels, consumers have increasing options through which to access entertainment video. The various economic models underlying these channels include subscription, transactional, ad-supported and piracy-based models. All of these have the potential to capture meaningful segments of the entertainment video market. Piracy, in particular, threatens to damage our business, as piracy renders virtually all content free. Traditional providers of entertainment video, including broadcasters and cable network operators, as well as internet based e-commerce or entertainment video providers, are rapidly increasing their internet-based video offerings. Several of these competitors have long operating histories, large customer bases, strong brand recognition and significant financial, marketing and other resources. As compared to our company, they may secure better terms from suppliers, adopt more aggressive pricing and devote more resources to product development, technology, infrastructure, content acquisitions and marketing.

 

New entrants may enter the market or existing providers may adjust their services with unique offerings or approaches to providing entertainment video. Companies also may enter into business combinations or alliances that strengthen their competitive positions. If we are unable to compete successfully or profitably with current and new competitors, our business will be adversely affected, and we may not be able to increase or maintain market share, revenues or profitability.

 

If we fail to maintain a positive reputation with consumers concerning our planned Bokoo TV video streaming subscription service, including the content offered, we may not be able to attract or retain subscribers, and our operating results may be adversely affected. We believe that a positive reputation with consumers concerning our planned Bokoo TV video streaming subscription service, once launched, is highly important in attracting and retaining subscribers who have a number of choices from which to obtain entertainment video. To the extent Bokoo TV video content is perceived as low quality, offensive or otherwise not compelling to consumers, our ability to establish and maintain a positive reputation may be adversely impacted.

 

If studios, content providers or other rights holders refuse to license streaming content or other rights upon terms acceptable to our company, our business could be adversely affected. Our ability to provide Bokoo TV subscribers with video streaming content depends on studios', content providers' and other rights holders' licensing rights to distribute such content and certain related elements thereof. The license periods and the terms and conditions of such licenses vary. If the studios, content providers and other rights holders are not or are no longer willing or able to license our company content upon terms acceptable to us, our ability to stream content to Bokoo TV subscribers will be adversely affected and/or our costs could increase. As competition increases, the cost of programming can be expected to increase. Also, we focus on providing an overall mix of content that engages subscribers in a cost-efficient manner. If we do not maintain a compelling mix of content, it can be expected that our subscriber acquisition and retention may be adversely affected.

 

Any significant disruption in, or unauthorized access to, our computer systems or those of third parties utilized in our operations, including those relating to cybersecurity or arising from cyber-attacks, could result in a loss or degradation of service, unauthorized disclosure of data, including subscriber information, or theft of intellectual property, which could adversely impact our business. Bokoo TV’s reputation and ability to attract, retain and serve subscribers is dependent upon the reliable performance and security of our computer systems and those of third parties utilized in our operations. These systems may be subject to damage or interruption from earthquakes, adverse weather conditions, other natural disasters, terrorist attacks, power loss, telecommunications failures and cybersecurity risks. Interruptions in these systems, or with the internet in general, could make Bokoo TV unavailable or degraded or otherwise hinder our ability to deliver Bokoo TV. Service interruptions, errors in software or the unavailability of computer systems used in operations could diminish the overall attractiveness of Bokoo TV to existing and potential subscribers.

 

 

 

 6 

 

 

Our computer systems and those of third parties used in our operations are vulnerable to cybersecurity risks, including computer viruses, physical or electronic break-ins and similar disruptions. Any attempt by hackers to obtain our data or intellectual property, disrupt Bokoo TV, or otherwise access to our systems, or those of associated third parties, if successful, could harm our business, be expensive to remedy and damage our reputation. We will implement certain systems and processes to thwart hackers and protect our data and systems. Any significant disruption to Bokoo TV could result in a loss of subscribers and adversely affect our business and results of operation.

 

Changes by network operators in how they handle and charge for access to data that travels across their networks could adversely impact our business. We rely upon the ability of consumers to access Bokoo TV through the internet. If network operators block, restrict or otherwise impair access to Bokoo TV over their networks, our Bokoo TV video streaming subscription service and business could be negatively affected. To the extent that network operators implement usage-based pricing, including meaningful bandwidth caps, or otherwise try to monetize access to their networks by data providers, we could incur greater operating expenses and our subscriber acquisition and retention could be negatively impacted.

 

If government regulations relating to the internet or other areas of our business change, we may need to alter the manner in which we conduct our business, or incur greater operating expenses. The adoption or modification of laws or regulations relating to the internet or other areas of our business could limit or otherwise adversely affect the manner in which we currently conduct our business. In addition, the continued growth and development of the market for online commerce may lead to more stringent consumer protection laws, which may impose additional burdens on us. If we are required to comply with new regulations or legislation or new interpretations of existing regulations or legislation, this compliance could cause us to incur additional expenses or alter our business model.

 

Privacy concerns could limit our ability to collect and leverage our subscriber data and disclosure of subscriber data could adversely impact our business and reputation. In the ordinary course of business, we will collect and utilize data supplied by Bokoo TV subscribers. We currently face certain legal obligations regarding the manner in which we treat such information. Other businesses have been criticized by privacy groups and governmental bodies for attempts to link personal identities and other information to data collected on the internet regarding users' browsing and other habits. Increased regulation of data utilization practices, including self-regulation or findings under existing laws that limit its ability to collect, transfer and use data, could have an adverse effect on our business.

 

Our reputation and our relationships with Bokoo TV video streaming subscribers would be harmed if subscriber data, particularly billing data, were to be accessed by unauthorized persons. We will maintain personal data regarding Bokoo TV subscribers, including names and billing data. Initially, this data will be maintained on third-party systems. With respect to billing data, such as credit card numbers, we will rely on licensed encryption and authentication technology to secure such information. Measures will be taken to protect against unauthorized intrusion into Bokoo TV subscribers' data. Despite these measures, our third-party payment processing services could experience an unauthorized intrusion into Bokoo TV subscribers' data. In the event of such a breach, current and potential Bokoo TV subscribers may become unwilling to provide the information necessary for them to become Bokoo TV subscribers. Additionally, we could face legal claims or regulatory fines or penalties for such a breach. The costs relating to any data breach could be material, and we do not expect to carry insurance against the risk of a data breach for the foreseeable future. For these reasons, should an unauthorized intrusion into Bokoo TV subscribers' data occur, our business could be adversely affected.

 

We will be subject to payment processing risk. Bokoo TV subscribers will pay their monthly fees using credit/debit cards. Initially, we will rely on third parties to process payment. Acceptance and processing of these payment methods are subject to certain rules and regulations and require payment of interchange and other fees. To the extent there are disruptions in our payment processing systems, our revenue, operating expenses and results of operation could be adversely impacted.

 

If our trademarks and other proprietary rights are not adequately protected to prevent use or appropriation by competitors, the value of the Bokoo TV brand may be diminished, and our business adversely affected. We rely, and expect to continue to rely, on a combination of confidentiality and license agreements with employees, consultants and third parties with whom we have relationships, as well as trademark, copyright, patent and trade secret protection laws, to protect our proprietary rights. If the protection of our intellectual property rights is inadequate to prevent use or misappropriation by third parties, the value of the Bokoo TV brand may be diminished, competitors may be able to more effectively mimic our video streaming service and methods of operations, the perception of the Bokoo TV business and service to subscribers and potential subscribers may become confused in the marketplace, and our ability to attract Bokoo TV subscribers may be adversely affected.

 

 

 

 7 

 

 

Our success will depend on external factors within the OTT video streaming industry. The success of our planned Bokoo TV video streaming services will depend on our ability to establish the Bokoo TV video streaming digital platform from which to provide our planned video streaming service. Thereafter, the success of our Bokoo TV video streaming business will also depend upon:

 

  creating effective distribution channels and brand awareness;
  critical reviews;
  the availability of alternatives;
  general economic conditions; and
  other tangible and intangible factors.

 

Risks Related to Compliance and Regulation

 

We will not have reporting obligations under Sections 14 or 16 of the Securities Exchange Act of 1934, nor will any shareholders have reporting requirements of Regulation 13D or 13G, nor Regulation 14D. So long as our common shares are not registered under the Exchange Act, our directors and executive officers and beneficial holders of 10% or more of our outstanding common shares will not be subject to Section 16 of the Exchange Act. Section 16(a) of the Exchange Act requires executive officers and directors and persons who beneficially own more than 10% of a registered class of equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common shares and other equity securities, on Forms 3, 4 and 5, respectively. Such information about our directors, executive officers and beneficial holders will only be available through periodic reports we file with OTC Markets.

 

Our common stock is not registered under the Exchange Act and we do not intend to register our common stock under the Exchange Act for the foreseeable future; provided, however, that we will register our common stock under the Exchange Act if we have, after the last day of any fiscal year, more than either (1) 2000 persons; or (2) 500 shareholders of record who are not accredited investors, in accordance with Section 12(g) of the Exchange Act.

 

Further, as long as our common stock is not registered under the Exchange Act, we will not be subject to Section 14 of the Exchange Act, which, among other things, prohibits companies that have securities registered under the Exchange Act from soliciting proxies or consents from shareholders without furnishing to shareholders and filing with the SEC a proxy statement and form of proxy complying with the proxy rules.

 

The reporting required by Section 14(d) of the Exchange Act provides information to the public about persons other than the company who is making the tender offer. A tender offer is a broad solicitation by a company or a third party to purchase a substantial percentage of a company’s common stock for a limited period of time. This offer is for a fixed price, usually at a premium over the current market price, and is customarily contingent on shareholders tendering a fixed number of their shares.

 

In addition, as long as our common stock is not registered under the Exchange Act, our company will not be subject to the reporting requirements of Regulation 13D and Regulation 13G, which require the disclosure of any person who, after acquiring directly or indirectly the beneficial ownership of any equity securities of a class, becomes, directly or indirectly, the beneficial owner of more than 5% of the class.

 

There may be deficiencies with our internal controls that require improvements. Our company is not required to provide a report on the effectiveness of our internal controls over financial reporting. We are in the process of evaluating whether our internal control procedures are effective and, therefore, there is a greater likelihood of undiscovered errors in our internal controls or reported financial statements as compared to issuers that have conducted such independent evaluations.

 

Risks Related to Our Organization and Structure

 

As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements, including the requirements for independent board members. As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements that an issuer conducting an offering on Form S-1 or listing on a national stock exchange would be. Accordingly, we are not required to have (a) a board of directors of which a majority consists of independent directors under the listing standards of a national stock exchange, (b) an audit committee composed entirely of independent directors and a written audit committee charter meeting a national stock exchange’s requirements, (c) a nominating/corporate governance committee composed entirely of independent directors and a written nominating/ corporate governance committee charter meeting a national stock exchange’s requirements, (d) a compensation committee composed entirely of independent directors and a written compensation committee charter meeting the requirements of a national stock exchange, and (e) independent audits of our internal controls. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of a national stock exchange.

 

 

 

 8 

 

 

Our holding company structure makes us dependent on our subsidiaries for our cash flow and could serve to subordinate the rights of our shareholders to the rights of creditors of our subsidiaries, in the event of an insolvency or liquidation of any such subsidiary. Our company acts as a holding company and, accordingly, substantially all of our operations are conducted through our subsidiaries. Such subsidiaries will be separate and distinct legal entities. As a result, substantially all of our cash flow will depend upon the earnings of our subsidiaries. In addition, we will depend on the distribution of earnings, loans or other payments by our subsidiaries. No subsidiary will have any obligation to provide our company with funds for our payment obligations. If there is an insolvency, liquidation or other reorganization of any of our subsidiaries, our shareholders will have no right to proceed against their assets. Creditors of those subsidiaries will be entitled to payment in full from the sale or other disposal of the assets of those subsidiaries before our company, as a shareholder, would be entitled to receive any distribution from that sale or disposal.

 

Risks Related to a Purchase of the Offered Shares

 

The outstanding shares of our Series A Preferred Stock preclude current and future owners of our common stock from influencing any corporate decision. Two of our directors, Barry Grunberger and Deepankar Katyal, are the beneficial owners of all outstanding shares of the Series A Preferred Stock. The Series A Preferred Stock has the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders. Messrs. Grunberger and Katyal will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Security Ownership of Certain Beneficial Owners and Management”).

 

The outstanding shares of our Series B Preferred Stock represent potential significant future dilution in ownership of our common stock, including the Offered Shares. The outstanding shares of our Series B Preferred Stock are convertible into a total of 125,025,000 shares of our common stock at any time. At such time as these shares of Series B Preferred Stock are converted into shares of common stock, holders of our common stock, including the Offered Shares, will incur significant dilution in their ownership of our company.

 

There is no minimum offering and no person has committed to purchase any of the Offered Shares. We have not established a minimum offering hereunder, which means that we will be able to accept even a nominal amount of proceeds, even if such amount of proceeds is not sufficient to permit us to achieve any of our business objectives. In this regard, there is no assurance that we will sell any of the Offered Shares or that we will sell enough of the Offered Shares necessary to achieve any of our business objectives. Additionally, no person is committed to purchase any of the Offered Shares.

 

We may seek additional capital that may result in shareholder dilution or that may have rights senior to those of our common stock. From time to time, we may seek to obtain additional capital, either through equity, equity-linked or debt securities. The decision to obtain additional capital will depend on, among other factors, our business plans, operating performance and condition of the capital markets. If we raise additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, which could negatively affect the market price of our common stock or cause our shareholders to experience dilution.

 

You may never realize any economic benefit from a purchase of Offered Shares. Because the market for our common stock is volatile, there is no assurance that you will ever realize any economic benefit from your purchase of Offered Shares.

 

We do not intend to pay dividends on our common stock. We intend to retain earnings, if any, to provide funds for the implementation of our business strategy. We do not intend to declare or pay any dividends in the foreseeable future. Therefore, there can be no assurance that holders of our common stock will receive cash, stock or other dividends on their shares of our common stock, until we have funds which our Board of Directors determines can be allocated to dividends.

 

 

 

 9 

 

 

Our shares of common stock are Penny Stock, which may impair trading liquidity. Disclosure requirements pertaining to penny stocks may reduce the level of trading activity in the market for our common stock and investors may find it difficult to sell their shares. Trades of our common stock will be subject to Rule 15g-9 of the SEC, which rule imposes certain requirements on broker-dealers who sell securities subject to the rule to persons other than established customers and accredited investors. For transactions covered by the rule, broker-dealers must make a special suitability determination for purchasers of the securities and receive the purchaser’s written agreement to the transaction prior to sale. The SEC also has rules that regulate broker-dealer practices in connection with transactions in penny stocks. 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, provided that current price and volume information with respect to transactions in that security is provided by the exchange or 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 nature and level of risks in the penny stock market. The broker-dealer also must 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. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation.

 

Our common stock is thinly traded and its market price may become highly volatile. There is currently only a limited market for our common stock. A limited market is characterized by a relatively limited number of shares in the public float, relatively low trading volume and a small number of brokerage firms acting as market makers. The market for low priced securities is generally less liquid and more volatile than securities traded on national stock markets. Wide fluctuations in market prices are not uncommon. No assurance can be given that the market for our common stock will continue. The price of our common stock may be subject to wide fluctuations in response to factors such as the following, some of which are beyond our control:

 

  quarterly variations in our operating results;
  operating results that vary from the expectations of investors;
  changes in expectations as to our future financial performance, including financial estimates by investors;
  reaction to our periodic filings, or presentations by executives at investor and industry conferences;
  changes in our capital structure;
  announcements of innovations or new services by us or our competitors;
  announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments;
  lack of success in the expansion of our business operations;
  announcements by third parties of significant claims or proceedings against our company or adverse developments in pending proceedings;
  additions or departures of key personnel;
  asset impairment;
  temporary or permanent inability to offer our streaming services; and
  rumors or public speculation about any of the above factors.

 

The terms of this offering were determined arbitrarily. The terms of this offering were determined arbitrarily by us. The offering price for the Offered Shares does not necessarily bear any relationship to our company’s assets, book value, earnings or other established criteria of valuation. Accordingly, the offering price of the Offered Shares should not be considered as an indication of any intrinsic value of such securities. (See “Dilution”).

 

Our common stock is subject to price volatility unrelated to our operations. The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting our company’s competitors or our company itself. In addition, the over-the-counter stock market is subject to extreme price and volume fluctuations in general. This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.

 

 

 

 10 

 

 

Future sales of our common stock, or the perception in the public markets that these sales may occur, could reduce the market price of our common stock. In general, our officers and directors and major shareholders, as affiliates, under Rule 144 may not sell more than one percent of the total issued and outstanding shares in any 90-day period, and must resell the shares in an unsolicited brokerage transaction at the market price. The availability for sale of substantial amounts of our common stock under Rule 144 or otherwise could reduce prevailing market prices for our common stock.

 

You will suffer dilution in the net tangible book value of the Offered Shares you purchase in this offering. If you acquire any Offered Shares, you will suffer immediate dilution, due to the lower book value per share of our common stock compared to the purchase price of the Offered Shares in this offering. (See “Dilution”).

 

As an issuer of penny stock, the protection provided by the federal securities laws relating to forward looking statements does not apply to us. Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.

 

 

 

 

 

 

 

 

 

 

 11 

 

DILUTION

 

Dilution in net tangible book value per share to purchasers of our common stock in this offering represents the difference between the amount per share paid by purchasers of the Offered Shares in this offering and the net tangible book value per share immediately after completion of this offering. In this offering, dilution is attributable primarily to our negative net tangible book value per share.

 

If you purchase Offered Shares in this offering, your investment will be diluted to the extent of the difference between your purchase price per Offered Share and the net tangible book value of our common stock after this offering. Our net tangible book value as of September 30, 2021, was $90,900 (unaudited), or $0.0008 per share. Net tangible book value per share is equal to total assets minus the sum of total liabilities and intangible assets divided by the total number of shares outstanding.

 

The tables below illustrate the dilution to purchasers of Offered Shares in this offering, on a pro forma basis, assuming 100%, 75%, 50% and 25% of the Offered Shares are sold.

 

 

Assuming the Sale of 100% of the Offered Shares  
Assumed offering price per share $[0.02-0.04]
Net tangible book value per share as of August 31, 2021 (unaudited) $0.0008
Increase in net tangible book value per share after giving effect to this offering $[0.0074-0.0135]
Pro forma net tangible book value per share as of August 31, 2021 (unaudited) $[0.0066-0.0127]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering $[0.0134-0.0273]

 

 

 

Assuming the Sale of 75% of the Offered Shares  
Assumed offering price per share $[0.02-0.04]
Net tangible book value per share as of August 31, 2021 (unaudited) $0.0008
Increase in net tangible book value per share after giving effect to this offering $[0.0063-0.0150]
Pro forma net tangible book value per share as of August 31, 2021 (unaudited) $[0.0055-0.0142]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering $[0.0145-0.0258]

 

 

 

Assuming the Sale of 50% of the Offered Shares  
Assumed offering price per share $[0.02-0.04]
Net tangible book value per share as of August 31, 2021 (unaudited) $0.0008
Increase in net tangible book value per share after giving effect to this offering $[0.0050-0.0086]
Pro forma net tangible book value per share as of August 31, 2021 (unaudited) $[0.0042-0.0078]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering $[0.0158-0.0322]

 

 

Assuming the Sale of 25% of the Offered Shares  
Assumed offering price per share $[0.02-0.04]
Net tangible book value per share as of August 31, 2021 (unaudited) $0.0008
Increase in net tangible book value per share after giving effect to this offering $[0.0035-0.0054]
Pro forma net tangible book value per share as of August 31, 2021 (unaudited) $[0.0027-0.0046]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering $[0.0173-0.0354]

 

 

 

 12 

 

 

USE OF PROCEEDS

 

The table below sets forth the estimated proceeds we would derive from this offering, assuming the sale of 25%, 50%, 75% and 100% of the Offered Shares and assuming the payment of no sales commissions or finder’s fees. There is, of course, no guaranty that we will be successful in selling any of the Offered Shares in this offering.

 

  Assumed Percentage of Offered Shares Sold in This Offering
  25%   50%   75%   100%
               
Offered Shares sold 12,500,000   25,000,000   37,500,000   50,000,000
Gross proceeds $[250,000-500,000]   $[500,000-1,000,000]   $[750,000-1,500,000]   $[1,000,000-2,000,000]
Offering expenses 20,000   20,000   20,000   20,000
Net proceeds $[230,000-480,000]   $[480,000-980,000]   $[730,000-1,480,000]   $[980,000-1,980,000]

 

The table below sets forth the manner in which we intend to apply the net proceeds derived by us in this offering, assuming the sale of 25%, 50%, 75% and 100% of the Offered Shares. All amounts set forth below are estimates.

 

    Use of Proceeds for Assumed Percentage
of Offered Shares Sold in This Offering
 
    25%     50%     75%     100%  
Development   $ [92,000-184,000]      $ [192,000-384,000]      $ [292,000-584,000]      $ [392,000-784,000]   
Content Acquisition     [69,000-138,000]        [144,000-288,000]        [219,000-438,000]        [294,000-588,000]   
Marketing     [23,000-54,000]        [48,000-104,000]        [73,000-154,000]        [98,000-204,000]   
General and Administrative     [23,000-54,000]        [48,000-104,000]        [73,000-154,000]        [98,000-204,000]   
Working Capital     [23,000-50,000]        [48,000-100,000]        [73,000-150,000]        [98,000-200,000]   
TOTAL    $ [230,000-480,000]      $ [480,000-980,000]      $ [730,000-1,480,000]      $ [980,000-1,980,000]   

 

We reserve the right to change the foregoing use of proceeds, should our management believe it to be in the best interest of our company. The allocations of the proceeds of this offering presented above constitute the current estimates of our management and are based on our current plans, assumptions made with respect to the OTT video streaming industry, general economic conditions and our future revenue and expenditure estimates.

 

Investors are cautioned that expenditures may vary substantially from the estimates presented above. Investors must rely on the judgment of our management, who will have broad discretion regarding the application of the proceeds of this offering. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations (if any), business developments and the rate of our growth. We may find it necessary or advisable to use portions of the proceeds of this offering for other purposes.

 

In the event we do not obtain the entire offering amount hereunder, we may attempt to obtain additional funds through private offerings of our securities or by borrowing funds. Currently, we do not have any committed sources of financing.

 

 

 

 13 

 

 

PLAN OF DISTRIBUTION

 

In General

 

Our company is offering a maximum of 50,000,000 Offered Shares on a best-efforts basis, at a fixed price of $____[0.02-0.04] per Offered Share; any funds derived from this offering will be immediately available to us for our use. There will be no refunds. This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering being qualified by the SEC or (c) the date on which this offering is earlier terminated by us, in our sole discretion.

 

There is no minimum number of Offered Shares that we are required to sell in this offering. All funds derived by us from this offering will be immediately available for use by us, in accordance with the uses set forth in the Use of Proceeds section of this Offering Circular. No funds will be placed in an escrow account during the offering period and no funds will be returned, once an investor’s subscription agreement has been accepted by us.

 

We intend to sell the Offered Shares in this offering through the efforts of our Chief Executive Officer, Barry Grunberger. Mr. Grunberger will not receive any compensation for offering or selling the Offered Shares. We believe that Mr. Grunberger is exempt from registration as a broker-dealers under the provisions of Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In particular, Mr. Grunberger:

 

  is not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Securities Act; and
  is not to be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and
  is not an associated person of a broker or dealer; and
  meets the conditions of the following:
  primarily performs, and will perform at the end of this offering, substantial duties for us or on our behalf otherwise than in connection with transactions in securities; and
   was not a broker or dealer, or an associated person of a broker or dealer, within the preceding 12 months; and
  did not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs (a)(4)(i) or (iii) of Rule 3a4-1 under the Exchange Act.

 

As of the date of this Offering Circular, we have not entered into any agreements with selling agents for the sale of the Offered Shares. However, we reserve the right to engage FINRA-member broker-dealers. In the event we engage FINRA-member broker-dealers, we expect to pay sales commissions of up to 8.0% of the gross offering proceeds from their sales of the Offered Shares. In connection with our appointment of a selling broker-dealer, we intend to enter into a standard selling agent agreement with the broker-dealer pursuant to which the broker-dealer would act as our non-exclusive sales agent in consideration of our payment of commissions of up to 8% on the sale of Offered Shares effected by the broker-dealer.

 

Procedures for Subscribing

 

If you are interested in subscribing for Offered Shares in this offering, please submit a request for information by e-mail to Mr. Grunberger at: barry@transnational-group.com; all relevant information will be delivered to you by return e-mail.

 

Thereafter, should you decide to subscribe for Offered Shares, you are required to follow the procedures described therein, which are:

 

  Electronically execute and deliver to us a subscription agreement; and
  Deliver funds directly by check or by wire or electronic funds transfer via ACH to our specified bank account.

 

 

 

 14 

 

 

Right to Reject Subscriptions. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to us, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.

 

Acceptance of Subscriptions. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the Offered Shares subscribed. Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.

 

This Offering Circular will be furnished to prospective investors upon their request via electronic PDF format and will be available for viewing and download 24 hours per day, 7 days per week on our company’s page on the SEC’s website: www.sec.gov.

 

An investor will become a shareholder of our company and the Offered Shares will be issued, as of the date of settlement. Settlement will not occur until an investor’s funds have cleared and we accept the investor as a shareholder.

 

By executing the subscription agreement and paying the total purchase price for the Offered Shares subscribed, each investor agrees to accept the terms of the subscription agreement and attests that the investor meets certain minimum financial standards. (See State Qualification and Investor Suitability Standards below).

 

An approved trustee must process and forward to us subscriptions made through IRAs, Keogh plans and 401(k) plans. In the case of investments through IRAs, Keogh plans and 401(k) plans, we will send the confirmation and notice of our acceptance to the trustee.

 

Minimum Purchase Requirements

 

You must initially purchase at least $5,000 of the Offered Shares in this offering. If you have satisfied the minimum purchase requirement, any additional purchase must be in an amount of at least $500.

 

State Law Exemption and Offerings to Qualified Purchasers

 

State Law Exemption. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to purchase any Offered Shares in any jurisdiction in which, or to any person to whom, it would be unlawful to do so. An investment in the Offered Shares involves substantial risks and possible loss by investors of their entire investments. (See “Risk Factors”).

 

The Offered Shares have not been qualified under the securities laws of any state or jurisdiction. Currently, we plan to sell the Offered Shares in Colorado, Connecticut, Delaware, Georgia, Puerto Rico and New York. However, we may, at a later date, decide to sell Offered Shares in other states. In the case of each state in which we sell the Offered Shares, we will qualify the Offered Shares for sale with the applicable state securities regulatory body or we will sell the Offered Shares pursuant to an exemption from registration found in the applicable state’s securities, or Blue Sky, law.

 

Certain of our offerees may be broker-dealers registered with the SEC under the Exchange Act, who may be interested in reselling the Offered Shares to others. Any such broker-dealer will be required to comply with the rules and regulations of the SEC and FINRA relating to underwriters.

 

Investor Suitability Standards. The Offered Shares may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.

 

 

 

 15 

 

 

Issuance of Offered Shares

 

Upon settlement, that is, at such time as an investor’s funds have cleared and we have accepted an investor’s subscription agreement, we will either issue such investor’s purchased Offered Shares in book-entry form or issue a certificate or certificates representing such investor’s purchased Offered Shares.

 

Transferability of the Offered Shares

 

The Offered Shares will be generally freely transferable, subject to any restrictions imposed by applicable securities laws or regulations.

 

Advertising, Sales and Other Promotional Materials

 

In addition to this Offering Circular, subject to limitations imposed by applicable securities laws, we expect to use additional advertising, sales and other promotional materials in connection with this offering. These materials may include information relating to this offering, articles and publications concerning industries relevant to our business operations or public advertisements and audio-visual materials, in each case only as authorized by us. In addition, the sales material may contain certain quotes from various publications without obtaining the consent of the author or the publication for use of the quoted material in the sales material. Although these materials will not contain information in conflict with the information provided by this Offering Circular and will be prepared with a view to presenting a balanced discussion of risk and reward with respect to the Offered Shares, these materials will not give a complete understanding of our company, this offering or the Offered Shares and are not to be considered part of this Offering Circular. This offering is made only by means of this Offering Circular and prospective investors must read and rely on the information provided in this Offering Circular in connection with their decision to invest in the Offered Shares.

 

 

 

 

 16 

 

 

DESCRIPTION OF SECURITIES

 

General

 

Our authorized capital stock consists of (a) 500,000,000 shares of common stock, $.001 par value per share and (b) 100,000,000 shares of Preferred Stock, $.001 par value per share, (1) 10,000,000 shares of which have been designated Series A Preferred Stock, (2) 75,000 shares of which have been designated Series B Preferred Stock and (3) 6,000 shares of which have been designated Series C Preferred Stock.

 

As of the date of this Offering Circular, there were (w) 115,100,000 shares of our common stock issued and outstanding held by 506 holders of record; (x) 10,000,000 shares of Series A Preferred Stock issued and outstanding held by three (3) holders of record; (y) 75,000 shares of Series B Preferred Stock issued and outstanding held by one holder of record; and (z) 1,000 shares of Series C Preferred Stock issued and outstanding held by one two (2) holders of record.

 

Common Stock

 

The holders of our common stock currently have (a) equal ratable rights to dividends from funds legally available therefore, when, as and if declared by our Board of Directors; (b) are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of the affairs of our company; (c) do not have preemptive, subscriptive or conversion rights and there are no redemption or sinking fund provisions or rights applicable thereto; and (d) are entitled to one non-cumulative vote per share on all matters on which shareholders may vote. Our Bylaws provide that, at all meetings of the shareholders for the election of directors, a plurality of the votes cast shall be sufficient to elect. On all other matters, except as otherwise required by Nevada law or our Articles of Incorporation, as amended, a majority of the votes cast at a meeting of the shareholders shall be necessary to authorize any corporate action to be taken by vote of the shareholders.

 

Series A Preferred Stock

 

Voting. The Series A Preferred Stock has the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders. 100% of our Series A Preferred Stock is owned by OTC Media-Cap, LLC. One of our directors, Deepankar Katyal, controls the disposition of the Series A Preferred Stock owned by OTC Media-Cap, LLC. Due to the superior voting rights of the Series A Preferred Stock, Mr. Katyal will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Security Ownership of Certain Beneficial Owners and Management” and “Certain Transactions”).

 

Dividends. The shares of Series A Preferred Stock shall be entitled to no dividends.

 

Liquidation Preference. In the event of liquidation, dissolution, or winding up of our company, either voluntary or involuntary,

the holder(s) of the Series A Preferred Stock will not be entitled to receive any of the assets of our company.

 

Conversion. The shares of Series A Preferred Stock do not possess rights of conversion.

 

Series B Preferred Stock

 

Voting. The Series B Preferred Stock has the following voting rights: with respect to each matter submitted to a vote of our shareholders, each holder of Series B Preferred Stock shall be entitled to cast that number of votes which is equivalent to the number of shares of Series B Preferred Stock owned by such holder.

 

Dividends. The shares of Series B Preferred Stock shall be entitled to dividends as may be declared by our Board of Directors.

 

 

 

 17 

 

 

Liquidation Preference. In the event of liquidation, dissolution, or winding up of our company, either voluntary or involuntary, the holders of the Series B Preferred Stock will be entitled to receive out of the assets of our company, the amount of $0.001 per share, before any payment is made or assets distributed to holders of our common stock; provided, however, that, with respect to liquidation preference, the Series B Preferred Stock shall be on par with our shares of Series A Preferred Stock.

 

Conversion. Each share of Series B Preferred Stock is convertible into 1,667 shares of our common stock, at any time.

 

Series C Preferred Stock

 

Voting. The shares of Series C Preferred Stock do not possess voting rights.

 

Dividends. The shares of Series C Preferred Stock shall be entitled to no dividends.

 

Liquidation Preference. In the event of liquidation, dissolution, or winding up of our company, either voluntary or involuntary, the holders of the Series C Preferred Stock will be entitled to receive out of the assets of our company, the amount of $100.00 per share, before any payment is made or assets distributed to holders of our common stock; provided, however, that, with respect to liquidation preference, the Series C Preferred Stock shall be junior to our shares of Series A Preferred Stock and Series B Preferred Stock.

 

Conversion. Each share of Series C Preferred Stock is convertible into 13,334 shares of our common stock, at any time.

 

Non-cumulative Voting

 

Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining shares will not be able to elect any of our directors.

 

In addition, one of our directors, Deepankar Katyal, controls the disposition of the Series A Preferred Stock owned by OTC Media-Cap, LLC. Due to the superior voting rights of the Series A Preferred Stock, Mr. Katyal will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Security Ownership of Certain Beneficial Owners and Management” and “Certain Relationships and Related Transactions”).

 

Pre-emptive Rights

 

As of the date of this Offering Circular, no holder of any shares of our capital stock has pre-emptive or preferential rights to acquire or subscribe for any unissued shares of any class of our capital stock not otherwise disclosed herein.

 

Dividend Policy

 

We have never declared or paid any dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.

 

Shareholder Meetings

 

Our bylaws provide that special meetings of shareholders may be called only by our Board of Directors, the chairman of the board, or our president, or as otherwise provided under Nevada law.

 

Transfer Agent

 

We have retained the services of Pacific Stock Transfer Co., 6725 Via Austi Parkway, Suite 300, Las Vegas, NV 89119, as the transfer agent for our common stock. Pacific Stock Transfer’s website is located at: www.pacificstocktransfer.com. No information found on Pacific Stock Transfer’s website is part of this Offering Circular.

 

 

 

 18 

 

 

BUSINESS

 

History

 

Our company was incorporated on April 2, 1999, in the State of Nevada as Vitaminoverrun.com Corp. In August 2001, our corporate name changed to Apache Motor Corporation. In November 2005, our corporate name changed to Transnational Automotive Group, Inc. In January 2014, our corporate name changed to Transnational Group, Inc.

 

On September 16, 2020, Grassroots Advisory, LLC was appointed as Custodian of our company, Transnational Group, Inc. (Case No. A-20-819126-B), by the Nevada District Court, in Clark County, Nevada. On January 22, 2021, the custodianship was terminated.

 

On July 18, 2021, we completed the acquisition of On OTT Now, Inc., which merged with and into our operating subsidiary, Bokoo TV, Inc. From its inception in September 2019, On OTT Now had engaged in the development of a multilingual OTT video streaming platform and had planned to demonstrate such platform in an effort to attract investment and business partner interest.

 

On August 8, 2021, we accepted the resignation of Douglas DiSanti as CEO and appointed Barry Grunberger as CEO and CFO. In addition, Deepankar Katyal and Andrew Van Noy were elected as Directors of our company.

 

Our principal executive offices are located at 2701 North Thanksgiving Way, Suite 100, Lehi, Utah 84043. Our telephone number is 800-579-4364. Our corporate website is located at www.transnational-group.com. No information found on our company’s website is part of this Offering Circular.

 

Overview

 

Our company intends to develop and market our planned Bokoo TV over-the-top (OTT) video streaming platform, which is to offer an affordable TV-like experience with hundreds of live channels and On Demand services. Bokoo TV will be available on the internet, mobile devices, Roku, Amazon Fire, Samsung and other prominent smart-TV platforms. Our initial marketing will be focused on Diaspora communities within the United States.

 

Over-the-Top (OTT)

 

Over-the-top (OTT) is the term used to describe the delivery of digital video and TV content via the internet to users, without requiring users to subscribe to a traditional cable or satellite pay-TV service, like Comcast, Time Warner Cable or DirecTV.

 

Bokoo TV

 

In General. Bokoo TV is our planned OTT video streaming platform that will offer subscribers an affordable TV-like experience with hundreds of live channels and On Demand services available on the internet, on mobile devices and on ROKU, Amazon Fire Stick, Android, Chromecast, IOS, Apple TV and other smart TV platforms.

 

Initially, we intent to focus our marketing and programming efforts towards Diaspora communities, first, in the United States, and, thereafter, internationally, including communities of Indian, Russian, Filipino, Chinese, Vietnamese origin. Currently, the total Diaspora population in North America approaches 60 million, led in numbers by the following countries and regions of origin: India, Mexico, Russia, China, Vietnam, Pakistan, Philippines, by Central America, South America, Africa, Asia and the Caribbean.

 

By creating our own Bokoo TV channels, both in English and in other native languages, as well as by partnering with content creators, content owners and aggregators, who will manage their own branded channels to upload to the Bokoo TV video streaming digital platform and control their channel’s content, programming and design, we expect that we will be able to get Bokoo TV to scale across available video streaming platforms, including ROKU, Amazon Fire Stick, Android, Chromecast, IOS and Apple TV.

 

 

 

 19 

 

 

We believe Bokoo TV is capable of becoming a leading OTT video streaming service for the Diaspora communities on all digital platforms, for linear, VOD and live channels, with a hybrid, affordable monthly subscription model, including a free first month and a limited advertising option, to achieve scale and continuous ongoing monthly revenue, as well as a premium-based service to use without commercials.

 

Background. Bokoo TV is the brand name for our planned OTT video streaming subscription service which is to be delivered to subscribers by and through the Bookoo TV App, and which will include our interconnected BokooTV.com website, will compete in the OTT content delivery industry.

 

Bokoo TV subscribers will be able to access and watch Bokoo TV’s video streaming content as much as they want, anytime, anywhere, on nearly any internet-connected device.

 

We expect Bokoo TV will be well positioned in a rapidly expanding industry segment. Once our Bokoo TV digital platform is completed, our initial strategy is to expand the Bokoo TV subscriber base, with an initial focus on the Diaspora communities in the United States. In conjunction with these efforts, we intend always to seek to improve the programming options available to Bokoo TV subscribers.

 

Streaming. The term streaming refers to the delivery method of the medium, rather than the medium itself. Today, streaming refers to situations in which an end-user watches digital video content (or listens to digital audio) on a device over the internet. With streaming content, the end-user is not required to download the entire digital video or digital audio file before consuming the desired content, that is, the desired content is continuously transmitted by a provider to, and received by, the end-user.

 

Video Delivery (Pay-TV) Industry. Over the past several years, the cable and satellite television industry has experienced an accelerating level of disruption caused by consumers who are cutting the cord. Cord-cutters are consumers who have cancelled their cable or satellite television service, in favor of video services delivered by over-the-top (see discussion below) providers.

 

OTT Content Industry. In broadcasting, over-the-top content (OTT) is the audio, video and other media content (e.g., television programming) transmitted, or delivered, to an end-user over the internet, without the involvement of a multiple-system operator. While an Internet Service Provider (ISP) may be aware of the transmitted contents (referred to as internet protocol (IP) packets), the ISP is not responsible for, nor able to control, the viewing abilities, copyrights and/or other redistribution of the IP packets, that is, the delivered content. In short, OTT refers to content from a third party that is delivered to an end-user, with the ISP simply transporting content.

 

According to Allied Market Research, the OTT market was worth $121.61 billion in 2019 and will grow to $1.039 trillion by 2027. Also, OTT streaming to televisions increased 115% from 2020 to 2021, according to Conviva. Further, of all revenue made in the OTT market: 51.58% comes from advertising video-on-demand; 40.16% comes from subscription video-on-demand; 5.1% comes from pay-per-view; and 3.16% comes from video downloads [Source: Statistica].

 

Modes of Access. End-users access OTT content through internet-connected devices, such as smart phones, smart TVs, set-top boxes, gaming consoles and desktop/laptop computers.

 

Bokoo TV Digital Platform Development

 

We have completed the Beta development of the administration console for the Bokoo TV digital platform and are currently working on development of the user interface for the client-side of the platform. We anticipate that this portion of the platform will be completed by the end of the second quarter of 2022.

 

Marketing

 

Our marketing efforts are spread across two channels: acquiring users and acquiring content. Our efforts to acquire users will include organic methods, using public relations and marketing efforts, advertising across paid programmatic media channels and social media, as well as partnerships with content providers. Our efforts to acquire content will include forming strategic partnerships, purchasing content, licensing agreements and re-purposed content.

 

 

 

 20 

 

 

Competition

 

The market for entertainment video is intensely competitive and subject to rapid change. Bokoo TV will compete against other entertainment video providers, such as multichannel video programming distributors (MVPDs), internet-based movie and TV content providers (including those that provide pirated content), video gaming providers and DVD rental outlets and, more broadly, against other sources of entertainment that Bokoo TV subscribers could choose in their free time.

 

Bokoo TV will also compete against entertainment video providers in obtaining content that subscribers will enjoy. Because consumers often maintain simultaneous subscriptions with multiple entertainment sources, we will strive to cause consumers to choose Bokoo TV in their free time. To accomplish this objective, we will seek continually to improve Bokoo TV, in both technology and content. There is no assurance that Bokoo TV will be able to compete effectively.

 

Netflix, the leading video streaming content provider, YouTube TV, Disney+ and Hulu are among the most well-known of our competitors. Many of our competitors possess substantially greater resources, financial and otherwise, than does our company. No assurances can be given that we will be able to compete successfully in the OTT video streaming industry.

 

Intellectual Property

 

We regard our trademarks, service marks, business know-how and proprietary recipes as having significant value and as being an important factor in the marketing of Bokoo TV. Our policy is to establish, enforce and protect our intellectual property rights using the intellectual property laws.

 

We are the owner of the Bokoo TV trademark. In the near future, we intend to file for registration of this trademark with the U.S. Patent and Trademark Office.

 

Litigation

 

We have no current, pending or threatened legal proceedings or administrative actions either by or against us that could have a material effect on our business, financial condition, or operations and any current, past or pending trading suspensions.

 

Facilities

 

We lease a small office space which is adequate for our current operations.

 

Employees

 

We have two full-time employees, our Chief Executive Officer, Barry Grunberger, and a developer, as well as nine independent contractors.

 

 

 

 

 

 

 21 

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Cautionary Statement

 

The following discussion and analysis should be read in conjunction with our unaudited financial statements and related notes, beginning on page F-1 of this Offering Circular.

 

Our actual results may differ materially from those anticipated in the following discussion, as a result of a variety of risks and uncertainties, including those described under Cautionary Statement Regarding Forward-Looking Statements and Risk Factors. We assume no obligation to update any of the forward-looking statements included herein.

 

COVID-19

 

On January 30, 2020, the World Health Organization declared the COVID-19 (coronavirus) outbreak a “Public Health Emergency of International Concern” and on March 10, 2020, declared it to be a pandemic. The virus and actions taken to mitigate its spread have had and are expected to continue to have a broad adverse impact on the economies and financial markets of many countries, including the geographical areas in which our company operates. To date, we do not believe that COVID-19 has had a material impact on our company’s operations, due to our company’s ongoing lack of operating capital.

 

Results of Operations

 

Nine Months Ended November 30, 2021 (“Interim 2021”) and 2020 (“Interim 2020”). During Interim 2021 and Interim 2020, our business operations generated no revenue.

 

During Interim 2021, we incurred operating expenses of $23,922 (unaudited), other expense of $500,000 and interest expense of $10,556, which were offset by a one-time gain on extinguishment of debt of $665,927, resulting in a net profit of $131,449 (unaudited).

 

During Interim 2020, we incurred interest expense of $40,464 (unaudited), resulting in a net loss of $(40,464) (unaudited).

 

Without obtaining significant proceeds in this offering or otherwise, we will be unable to complete the development and launch of the Bokoo TV digital video streaming platform. Should we obtain such needed funds, we expect that our revenues will increase from quarter to quarter, beginning with the third quarter of 2022. There is no assurance that such will be the case, however. We expect to incur operating losses through at least all of 2022.

 

Further, because of our current lack of growth capital and the uncertainty of our obtaining needed capital, we are unable to predict the levels of our future revenues.

 

Years Ended February 28, 2021 (“Fiscal 2021”) and 2020 (“Fiscal 2020”). During Fiscal 2021 and Fiscal 2020, our business operations generated no revenue.

 

During Fiscal 2021, we incurred interest expense of $53,659, resulting in a net loss of $(53,659) (unaudited).

 

During Fiscal 2020, we incurred interest expense of $55,673, resulting in a net loss of $(55,673) (unaudited).

 

Plan of Operation

 

We believe that the proceeds of this offering will satisfy our cash requirements for at least the next twelve months.

 

 

 

 22 

 

 

Platform Completion. Should we derived at least $500,000 in proceeds in this offering, we will be able to complete the development of our Bokoo TV video streaming digital platform.

 

In General. Bokoo TV is our planned OTT video streaming platform that will offer subscribers an affordable TV-like experience with hundreds of live channels and On Demand services available on the internet, on mobile devices and on ROKU, Amazon Fire Stick, Android, Chromecast, IOS, Apple TV and other smart TV platforms.

 

Initially, we intent to focus our marketing and programming efforts towards Diaspora communities, first, in the United States, and, thereafter, internationally, including communities of Indian, Russian, Filipino, Chinese, Vietnamese origin. Currently, the total Diaspora population in North America approaches 60 million, led in numbers by the following countries and regions of origin: India, Mexico, Russia, China, Vietnam, Pakistan, Philippines, by Central America, South America, Africa, Asia and the Caribbean.

 

By creating our own Bokoo TV channels, both in English and in other native languages, as well as by partnering with content creators, content owners and aggregators, who will manage their own branded channels to upload to the Bokoo TV video streaming digital platform and control their channel’s content, programming and design, we expect that we will be able to get Bokoo TV to scale across available video streaming platforms, including ROKU, Amazon Fire Stick, Android, Chromecast, IOS and Apple TV.

 

We believe Bokoo TV is capable of becoming a leading OTT video streaming service for the Diaspora communities on all digital platforms, for linear, VOD and live channels, with a hybrid, affordable monthly subscription model, including a free first month and a limited advertising option, to achieve scale and continuous ongoing monthly revenue, as well as a premium-based service to use without commercials.

 

Financial Condition, Liquidity and Capital Resources

 

November 30. At November 30, 2021, our company had $79,611 (unaudited) in cash and had working capital of $76,078 (unaudited), compared to $-0- (unaudited) in cash and a working capital deficit of $953,811 (unaudited) at February 28, 2021.

 

Our company’s current cash position of approximately $79,000 is adequate for our company to maintain its present level of operations through at least the first quarter of 2022. However, we must obtain additional capital from third parties, including in this offering, to implement our full business plans. There is no assurance that we will be successful in obtaining such additional capital.

 

February 28, 2021. At February 28, 2021, our company had $-0- (unaudited) in cash and a working capital deficit of $953,811 (unaudited), compared to $-0- (unaudited) in cash and a working capital deficit of $900,152 (unaudited) at February 28, 2020.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Contractual Obligations

 

To date, we have not entered into any significant long-term obligations that require us to make monthly cash payments.

 

Capital Expenditures

 

We made no capital expenditures during the year ended February 28, 2021, nor during the six months ended August 31, 2021. We do not anticipate making any such expenditures during the next twelve months, unless we are able to obtain sufficient capital, including from this offering, of which there is no assurance.

 

 

 

 23 

 

 

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

 

Directors and Executive Officers

 

The following table sets forth certain information concerning our company’s executive management.

 

  Name   Age   Position(s)  
  Barry Grunberger   68   Chief Executive Officer, Acting Chief Financial Officer, Secretary and Director  
  Deepankar Katyal   36   Director  
  Andrew Van Noy   39   Director  

 

Our directors serve until a successor is elected and qualified. Our officers are elected by the Board of Directors to a term of one (1) year and serves until their successor(s) is duly elected and qualified, or until they are removed from office. There exist no family relationships among our officers and directors.

 

Certain information regarding the backgrounds of each of our officers and directors is set forth below.

 

Barry Grunberger has served our company as Chief Executive Officer, Secretary and a Director, since August 2021. Prior to his joining our company, since June 2019, Mr. Grunberger has served as Chief Executive Officer of On OTT Now, Inc., d/b/a Bokoo TV, a digital streaming platform for immigrant communities in North America, which company became our subsidiary in August 2021. Mr. Grunberger served as CEO and co-founder of Stream Go Media LLC, a Roku publisher that developed over 25 channels on the Roku platform, from August 2019 to May 2020. From July 2018 to May 2019, Mr. Grunberger was Chief Revenue and Strategy Officer for Gamoshi, a new supply side platform for digital publishers headquartered in Israel. Prior to his serving Gamoshi, he served as Head of Business Development for Verta Media, one of the fastest growing supply side platforms in the digital ad environment, from June 2018 to August 2018. He was as co-founder of startup-Progrox, a digital ad platform, from October 2015 until June 2016. He was Chief Revenue Officer for Konnected, a supply side platform for publishers, from January 2015 until August 2015. Mr. Grunberger was a co-founder of Ad Forge, a digital ad platform, from December 2013 to December 2014. Prior to his efforts with Ad Forge, he was Chief Revenue Officer at Hot Point media, a publisher of web sites, from February 2013 until December 2013, and Senior Vice President Business Development and Sales for Hot Point Media from September 2012 until February 2013. From February 2012 to September 2012, Mr. Grunberger served as Executive Vice President Business Development charged with managing its demand supply platform) for digital publishers. He served as Global Senior Vice President Business Development and Member of the Board of Directors from July 2010 until January 2012. Mr. Grunberger attended Boston University.

 

Deepankar Katyal has served our company as a Director, since July 2021. Since 2017, Mr. Katyal has served as Chief Executive Officer of Advangelists, LLC, a wholly-owned subsidiary of Mobiquity Technologies, Inc. (trading symbol: MOBQ), a next generation, AdTech Operating System platform for data and advertising. Mr. Katyal was a director of MOBQ from December 2018 until May 2020. From January 2017 to the present, he has also served as an advisor providing business and product advice to Q1media, a digital media services company. Additionally, from 2016 to the present, he has served as a strategic advisor to Silicon Valley Stealth Mode Products, a private company. From May 2016 to April 2017, he served as a strategic advisor to Airupt Inc., a mobile marketing platform for brands. From May 2016 to March 2017, he was head of Partnership and Strategy for Adtile Technologies, a mobile publishing and advertising solution company. From November 2015 to 2016, he served as a strategic advisor to Moonraft Innovation Labs, a company that creates customer experiences to differentiate the entities’ clients in the market by creating and designing interactive experiences across physical and digital customer touch points. From April 2014 to May 2016, he also served as a member of the innovation team at Opera Mediaworks, a mobile advertising platform company.

 

Andrew Van Noy has served our company as a Director, since June 2021, and, from June to August 2021, he served as our Chief Executive Officer and President. Since May 2011, Mr. Van Noy has served in various executive capacities for AiAdvertising, Inc. (trading symbol: AIAD), the developer of a proprietary advertising software platform powered by machine learning and artificial intelligence, including as Vice President of Sales and Marketing, as Executive Vice President, as President since April 2021, as Chief Executive Officer since August 2012 and as a Director since November 2012. Mr. Van Noy earned a a Bachelor of Science degree from BYU, Provo, Utah.

 

 

 

 24 

 

 

Conflicts of Interest

 

At the present time, we do not foresee any direct conflict between our directors, their other business interests and their involvement in our company.

 

Corporate Governance

 

We do not have a separate Compensation Committee, Audit Committee or Nominating Committee. These functions are conducted by our Board of Directors acting as a whole.

 

During the year ended February 28, 2021, our Board of Directors did not hold a meeting, but took action by unanimous written consent in lieu of a meeting on two occasions.

 

Independence of Board of Directors

 

None of our directors is not independent, within the meaning of definitions established by the SEC or any self-regulatory organization. We are not currently subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include independent directors.

 

Shareholder Communications with Our Board of Directors

 

Our company welcomes comments and questions from our shareholders. Shareholders should direct all communications to our Chief Executive Officer, Barry Grunberger, at our executive offices. However, while we appreciate all comments from shareholders, we may not be able to respond individually to all communications. We attempt to address shareholder questions and concerns in our press releases and documents filed with OTC Markets, so that all shareholders have access to information about us at the same time. Mr. Grunberger collects and evaluates all shareholder communications. All communications addressed to our directors and executive officers will be reviewed by those parties, unless the communication is clearly frivolous.

 

Code of Ethics

 

As of the date of this Offering Circular, our Board of Directors has not adopted a code of ethics with respect to our directors, officers and employees.

 

 

 

 

 

 

 25 

 

 

EXECUTIVE COMPENSATION

 

In General

 

As of the date of this Offering Circular, there are no annuity, pension or retirement benefits proposed to be paid to officers, directors or employees of our company, pursuant to any presently existing plan provided by, or contributed to, our company.

 

Compensation Summary

 

The following table summarizes information concerning the compensation awarded, paid to or earned by, our executive officer.

 

 Name and Principal Position

Year

Salary

($)

Bonus

($)

 

Stock

Awards

($)

Option

Awards

($)

 

Non-Equity Incentive Plan Compensation

($)

Non-qualified

Deferred

Compensation

Earnings

($)

 

All Other Compen-

sation

($)

 

Total

($)

                   
Barry Grunberger * 2021
Chief Executive Officer, Acting Chief Financial Officer, Secretary 2020

.

* Mr. Grunberger did not assume his offices until July 2021

 

Outstanding Option Awards

 

The following table provides certain information regarding unexercised options to purchase common stock, stock options that have not vested and equity-incentive plan awards outstanding as of the date of this Offering Circular, for each named executive officer.

 

   Option Awards  Stock Awards 
Name 

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable

 

Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable

 

Equity

Incentive

Plan

Awards:

Number of

Securities

Underlying

Unexercised

Unearned

Options (#)

   

 

Option

Exercise

Price ($)

  

 

Option

Expiration

Date

 

 

Number of

Shares or

Units of

Stock That

Have Not

Vested (#)

 

Market

Value of

Shares or

Units of

Stock That

Have Not

Vested ($)

   

Equity

Incentive

Plan Awards:

Number of

Unearned

Shares, Units

or Other

Rights That

Have Not

Vested (#)

    

Equity

Incentive

Plan Awards:

Market or

Payout Value

of Unearned

Shares, Units

or Other

Rights That

Have Not

Vested ($)

 

Barry Grunberger

            n/a    n/a        

 

Employment Agreements

 

We have not entered into an employment agreement with our sole officer.

 

 

 

 26 

 

 

Outstanding Equity Awards

 

During the years ended February 28, 2021 and 2020, our Board of Directors made no equity awards and no such award is pending.

 

Long-Term Incentive Plans

 

We currently have no long-term incentive plans.

 

Director Compensation

 

Our directors receive no compensation for their serving as directors.

 

 

 

 

 

 

 

 

 

 27 

 

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

The following table sets forth, as of the date of this Offering Circular, information regarding beneficial ownership of our common stock by the following: (a) each person, or group of affiliated persons, known by our company to be the beneficial owner of more than five percent of any class of our voting securities; (b) each of our directors; (c) each of the named executive officers; and (d) all directors and executive officers as a group. Beneficial ownership is determined in accordance with the rules of the SEC, based on voting or investment power with respect to the securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock underlying convertible instruments, if any, held by that person are deemed to be outstanding if the convertible instruments are exercisable within 60 days of the date hereof.

 

We currently have outstanding shares of preferred stock, Series B Preferred Stock and Series C Preferred Stock, that are convertible into shares of our common stock within 60 days of the date hereof. In the table below, a total of 125,025,000 shares of our common stock underlying our outstanding shares of Series B Preferred Stock and a total of 13,334,000 shares of our common stock underlying our outstanding shares of Series C Preferred Stock are deemed to be outstanding, in determining beneficial ownership of our common stock.

 

 

   Share Ownership
Before This Offering
   Share Ownership
After This Offering
    Effective Voting Power After This Offering  
Name of Shareholder  Number of Shares Beneficially Owned  % Beneficially Owned(1)   Number of Shares Beneficially Owned   % Beneficially Owned (2)    Number of Shares Entitled to Vote   % of Total Shares Voting (3)  
Common Stock                          
Executive Officers and Directors                          
Barry Grunberger  17,503,000(4)   3.91%   17,503,000(4)   5.77%           
Deepankar Katyal  17,503,000(4)   6.91%   17,503,000(4)   5.77%    See Note 3,  
Andrew Van Noy  58,000,000   22.88%   58,000,000   19.11%    Note 4 and Note 7  
Officers and directors, as a group (3 persons)  93,007,000(5)   36.70%   93,007,000(5)   30.65%           
5% Owners                          
7P Capital, LLC(6)   13,639,492    5.38%    13,639,492    4.49%           
Series A Preferred Stock(7)                              
OTC Media-Cap, LLC(8)   10,000,000    100%    10,000,000    100%           
Series B Preferred Stock(9)                              
OTC Media-Cap, LLC(8)   75,000    100%    75,000    100%           
Series C Preferred Stock(10)                              
Altus Advistors, LLC(11)   500    50.00%    500    50.00%           
ML Squared(12)   500    50.00%    500    50.00%           

 

 

 

 28 

 

________________________________

 

(1)  Based on 253,459,000 shares outstanding, which includes (a) 115,100,000 issued shares, (b) 125,025,000 unissued shares that underlie Series B Preferred Stock and (c) 13,334,000 unissued shares that underlie Series C Preferred Stock, before this offering.
(2)  Based on 303,459,000 shares outstanding, which includes (a) 165,100,000 issued shares, assuming the sale of all of the Offered Shares, (b) 125,025,000  unissued shares that underlie Series B Preferred Stock and (c) 13,334,000 unissued shares that underlie Series C Preferred Stock, after this offering.
(3)  100% of our Series A Preferred Stock is owned by OTC Media-Cap, LLC. One of our directors, Deepankar Katyal, controls the disposition of the Series A Preferred Stock owned by OTC Media-Cap, LLC. The shares of Series A Preferred Stock have the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders. Due to the superior voting rights of the Series A Preferred Stock (see Note 7), Mr. Katyal will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction.
(4)  None of these shares has been issued, but underlie shares of Series B Preferred Stock, which shares of Series B Preferred Stock are owned of record by OTC Media-Cap, LLC (see Note 8).
(5)  58,00,000 of these shares have been issued; 35,007,000 of these shares have not been issued, but underlie shares of Series B Preferred Stock (see Note 8).
(6)  Brian Guinn is the control person of this entity.
(7)  The shares of Series A Preferred Stock have the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders.
(8)  One of our Directors, Deepankar Katyal, controls the disposition of the Series A Preferred Stock owned by this entity (see Note 3). In addition, each of Mr. Katyal and our Chief Executive Officer, Barry Grunberger, beneficially owns 14% of this entity. Based on such beneficial ownership, Messrs. Katyal and Grunberger are each deemed to own beneficially 17,503,000 shares of our common stock (see Note 7).
(9)  Each share of Series B Preferred Stock is convertible into 1,667 shares of our common stock, at any time.
(10)  Each share of Series C Preferred Stock is convertible into 13,334 shares of our common stock, at any time.
(11)  Greg Boden is the control person of this entity.
(12)  Matt Long is the control person of this entity.

 

Series A Preferred Stock

 

Currently, there are 10,000,000 shares of our Series A Preferred Stock issued and outstanding, which shares are owned of record by OTC Media-Cap, LLC. One of our directors, Deepankar Katyal, controls the disposition of the Series A Preferred Stock owned by OTC Media-Cap, LLC. The Series A Preferred Stock has the following voting rights: each share of the Series A Preferred Stock may vote the equivalent of 1,000 shares of our common stock on all matters submitted to our shareholders. Mr. Katyal will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Description of Securities—Series A Preferred Stock”).

 

 

 

 

 

 29 

 

 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

Acquisition Agreement

 

On July 18, 2021, we entered into a merger and plan of agreement with On OTT Now, Inc. (“On OTT”), a company owned by our current CEO and a Director, Barry Grunberger, whereby On OTT merged into our subsidiary, BoKoo TV, Inc, with the surviving entity being BoKoo TV, Inc. As merger consideration, On OTT shareholders received 10,000,000 shares of our Series A Preferred Stock and 75,000 shares of Series B Preferred Stock. Our shares of Series A Preferred Stock possesses superior voting rights. (See “Description of Securities—Preferred Stock— Series A Preferred Stock”). Each share of our Series B Preferred Stock converts into 1,667 shares of our common stock. (See “Description of Securities—Preferred Stock— Series B Preferred Stock” and “Security Ownership of Certain Beneficial Owners and Management”).

 

LEGAL MATTERS

 

Certain legal matters with respect to the Offered Shares offered by this Offering Circular will be passed upon by Newlan Law Firm, PLLC, Flower Mound, Texas. Newlan Law Firm, PLLC owns no securities of our company.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed an offering statement on Form 1-A with the SEC under 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 SEC, 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 SEC. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains an Internet website that contains all information regarding companies that file electronically with the SEC. The address of the site is www.sec.gov.

 

 

 

 

 

 

 30 

 

 

INDEX TO FINANCIAL STATEMENTS

 

 

Unaudited Financial Statements for the Nine Months Ended November 30, 2021 and 2020

Page

   
Balance Sheets at November 30, 2021, and February 28, 2021 (unaudited) F-2
Statements of Operations For the Three and Nine Months Ended November 30, 2021 and 2020 (unaudited) F-3
Statements of Changes in Stockholders’ Equity (Deficit) For the Nine Months Ended November 30, 2021 and 2020 (unaudited) F-4
Statements of Cash Flows For the Nine Months Ended November 30, 2021 and 2020 (unaudited) F-5
Notes to Unaudited Financial Statements F-6
   
Unaudited Financial Statements for the Years Ended February 28, 2021 and 2020  
   
Balance Sheets at February 28, 2021 and 2020 (unaudited) F-
Statements of Operations For the Years Ended February 28, 2021 and 2020 (unaudited) F-
Statements of Changes in Stockholders’ Equity (Deficit) For the Years Ended February 28, 2021 and 2020 (unaudited) F-
Statements of Cash Flows For the Years Ended February 28, 2021 and 2020 (unaudited) F-
Notes to Unaudited Financial Statements F-
   
Unaudited Pro Forma Financial Statements  
   
Unaudited Pro Forma Balance Sheet F-
Unaudited Statement of Operations F-
Notes to Unaudited Pro Forma Financial Statements F-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 F-1 

 

 

Transnational Group, Inc.

Unaudited Consolidated Balance Sheet

               

 

   November 30, 2021   February 28, 2021 
   (unaudited)   (unaudited) 
ASSETS        
CURRENT ASSETS          
Cash  $79,611   $ 
Trade and other receivables        
Advance on acquisition        
Prepaid expenses - claims        
Mining equipment        
Mining equipment awaiting shipment        
TOTAL CURRENT ASSETS   79,611     
           
OTHER ASSETS          
Goodwill and intangible assets   7,500,000     
TOTAL OTHER ASSETS   7,500,000     
           
           
TOTAL ASSETS  $7,579,611   $ 
           
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)          
           
CURRENT LIABILITIES          
Loans and advances from stockholders  $3,533   $953,811 
Accrued liabilities        
Payables to stock holders        
TOTAL CURRENT LIABILITIES   3,533    953,811 
           
TOTAL LIABILITIES   3,533    953,811 
           
SHAREHOLDERS' EQUITY (DEFICIT)          
Preferred stock, $0.001 par value; 100,000,000 Authorized shares: zero outstanding   10,076     
Common stock, $0.001 par value; 500,000,000 authorized shares; 115,100,000 and 46,000,000 shares issued and outstanding, respectively   115,100    46,000 
Additional paid in capital   25,676,713    17,357,449 
Accumulated deficit   (18,225,811)   (18,357,260)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)   7,576,078    (953,811)
           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)  $7,579,611   $ 

 

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

 

 

 F-2 

 

 

Transnational Group, Inc.

Unaudited Consolidated Income Statement

                 

 

   Three Months Ended   Nine Months Ended 
   November 30, 2021   November 30, 2020   November 30, 2021   November 30, 2020 
   (unaudited)  (unaudited)  (unaudited)  (unaudited)
REVENUE  $   $   $   $ 
                     
COST OF REVENUE                
Gross Profit                
                     
OPERATING EXPENSES                    
Salaries and outside services   11,000        11,000     
Selling, general and administrative expenses   3,722        12,922     
Depreciation and amortization                
TOTAL OPERATING EXPENSES   14,722        23,922     
                     
INCOME (LOSS) FROM OPERATIONS BEFORE OTHER INCOME AND TAXES   (14,722)       (23,922)    
                     
OTHER INCOME (EXPENSE)                    
Other expense           (500,000)    
Gain on extinguishment of debt           665,927     
Interest expense       (13,341)   (10,556)   (40,464)
TOTAL OTHER INCOME (EXPENSE)       (13,341)   155,371    (40,464)
                     
INCOME/(LOSS) FROM OPERATIONS BEFORE PROVISION FOR TAXES   (14,722)   (13,341)   131,449    (40,464)
                     
PROVISION (BENEFIT) FOR INCOME TAXES                
                     
NET INCOME/(LOSS)   (14,722)   (13,341)   131,449    (40,464)
                     
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS  $(14,722)  $(13,341)  $131,449   $(40,464)

 

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

 

 

 


 F-3 

 

 

Transnational Group, Inc.

Unaudited Consolidated Statement of Stockholders' Equity

 

 

                   Additional         
   Preferred Stock   Common Stock   Paid-in   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Deficit   Total 
                             
   Nine months ended November 30, 2020 
                             
Balance, February 28, 2020      $    39,860,508   $39,861   $17,363,588   $(18,303,601)  $(900,152)
                                    
Net loss                       (13,635)   (13,635)
                                    
Balance, May 31, 2020           39,860,508    39,861    17,363,588    (18,317,236)   (913,787)
                                    
Net loss                       (13,488)   (13,488)
                                    
Balance, August 31, 2020           39,860,508    39,861    17,363,588    (18,330,724)   (927,275)
                                    
Net loss                       (13,341)   (13,341)
                                    
Balance, November 30, 2020      $    39,860,508   $39,861   $17,363,588   $(18,344,065)  $(940,616)
                                    
                   Additional         
   Preferred Stock   Common Stock   Paid-in   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Deficit   Total 
                             
    Nine months ended November 30, 2021 
                                    
Balance, February 28, 2021      $    46,000,000   $46,000   $17,357,449   $(18,357,260)  $(953,811)
                                    
Stock issuance to lenders           3,600,000    3,600    294,840        298,440 
                                    
Stock issuance to custodian           58,000,000    58,000    (58,000)        
                                    
Net income                       655,371    655,371 
                                    
Balance, May 31, 2021           107,600,000    107,600    17,594,289    (17,701,889)    
                                    
Issuance of Series A Preferred stock   10,000,000    10,000            490,000        500,000 
                                    
Issuance of Series B Preferred stock   75,000    75            7,499,925        7,500,000 
                                    
Issuance of Series C Preferred stock   1,000    1            99,999        100,000 
                                    
Stock issuance to lenders           7,500,000    7,500    (7,500)        
                                    
Net loss                       (509,200)   (509,200)
                                    
Balance, August 31, 2021   10,076,000    10,076    115,100,000    115,100    25,676,713    (18,211,089)   7,590,800 
                                    
Net loss                       (14,722)   (14,722)
                                    
Balance, November 30, 2021   10,076,000   $10,076    115,100,000   $115,100   $25,676,713   $(18,225,811)  $7,576,078 

 

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

 

 

 

 F-4 

 

 

Transnational Group, Inc.

Unaudited Consolidated Statement of Cash Flows

             

 

   Nine Months Ended 
   November 30, 2021   November 30, 2020 
   (unaudited)   (unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net gain (loss) from continued operations  $131,449   $(40,464)
Adjustment to reconcile net loss to net cash (used in) operating activities        
Non-cash compensation expense        
Non-cash service expense        
Change in assets and liabilities:        
(Increase) Decrease in:          
Accounts payable   3,533     
Accrued expenses   10,556    40,464 
           
NET CASH USED IN OPERATING ACTIVITIES   145,538     
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Acquisition of On OTT Now        
           
           
NET CASH PROVIDED BY INVESTING ACTIVITIES        
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Gain on exchange of debt for equity   (665,927)    
Issuance of Series A Pref   500,000     
Issuance of Series B Pref        
Issuance of Series C Pref   100,000     
           
NET CASH PROVIDED BY FINANCING ACTIVITIES   (65,927)    
           
NET INCREASE / (DECREASE) IN CASH   79,611     
           
CASH, BEGINNING OF PERIOD        
           
CASH, END OF PERIOD  $79,611   $ 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION          
Interest paid  $   $ 
Taxes paid  $   $ 
           
Non-cash financing activities:          
Issuance of common stock to lenders  $298,440   $ 

 

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

 

 

 

 

 F-5 

 

 

TRANSNATIONAL GROUP, INC. AND SUBSIDIARIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

 

November 30, 2021

 

1. BASIS OF PRESENTATION

 

The accompanying unaudited Consolidated Financial Statements of Transnational Group, Inc. ("Transnational Group," "we," "us," "our," or the "Company"), have been prepared in accordance with the instructions to interim financial reporting as prescribed by the Securities and Exchange Commission (the "SEC"). The results for the interim periods are not necessarily indicative of results for the entire year. In the opinion of management, the unaudited Consolidated Financial Statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein. Any such adjustments are of a normal recurring nature.

 

Going Concern

The accompanying Consolidated Financial Statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying Consolidated Financial Statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company does not generate significant revenue, and has negative cash flows from operations, which raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, raising additional capital. Historically, the Company has obtained funds from investors since its inception through sales of our securities. The Company will also seek to generate additional working capital from increasing sales from its operations, and continue to pursue its business plan and purposes.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies of Transnational Group is presented to assist in understanding the Company's Consolidated Financial Statements. The Consolidated Financial Statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the Consolidated Financial Statements.

 

Accounts Receivable

The Company has not yet extended credit to its customers. Accounts receivable are customer obligations due under normal trade terms. Once the Company resumes offering credit to its customers, we will perform continuing credit evaluations of our customers' financial condition. Management will review accounts receivable on a regular basis, based on contractual terms and how recently payments have been received to determine if any such amounts will potentially be uncollected. The Company will include any balances that are determined to be uncollectible in its allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable would be written off. The balance of the allowance account at November 30, 2021 and February 28, 2021 were both zero.

 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Since the Company has limited operations, estimates are primarily used in measuring liabilities, fair value assumptions in accounting for business combinations and analyzing goodwill, intangible assets, and long-lived asset impairments and adjustments.

 

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of November 30, 2021, the Company had a cash balance of $79,611.

 

 

 

 F-6 

 

 

Property and Equipment

Property and equipment are stated at cost, and are depreciated or amortized using the straight-line method over the following estimated useful lives:

 

Furniture, fixtures & equipment 7 Years
Computer equipment 5 Years
Commerce server 5 Years
Computer software 3 - 5 Years
Leasehold improvements Length of the lease

 

Since the Company had no depreciable assets, depreciation expense was zero for the three months ended November 30, 2021.

 

Revenue Recognition

During the period, the Company had no revenue. However, when we do record revenue, it will be in accordance with ASC 606. The deferred revenue and customer deposits as of November 30, 2021, and February 28, 2021 were both zero.

 

Research and Development

Research and development costs are expensed as incurred. Total research and development costs were zero for the three months ended November 30, 2021.

 

Advertising Costs

The Company expenses the cost of advertising and promotional materials when incurred. Total advertising cost was zero for the three months ended November 30, 2021.

 

Fair value of financial instruments

The Company's financial instruments, including cash and cash equivalents and notes payable, are carried at cost, which approximates their fair value, due to the relatively short maturity of these instruments. As of November 30, 2021 and February 28, 2021, the Company's notes payable have stated borrowing rates that are consistent with those currently available to the Company and, accordingly, the Company believes the carrying value of these debt instruments approximates their fair value.

 

Fair value is defined as the price to sell an asset or transfer a liability, between market participants at the measurement date. Fair value measurements assume that the asset or liability is (1) exchanged in an orderly manner, (2) the exchange is in the principal market for that asset or liability, and (3) the market participants are independent, knowledgeable, able and willing to transact an exchange. Fair value accounting and reporting establishes a framework for measuring fair value by creating a hierarchy for observable independent market inputs and unobservable market assumptions and expands disclosures about fair value measurements. Considerable judgment is required to interpret the market data used to develop fair value estimates. As such, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current exchange. The use of different market assumptions and/or estimation methods could have a material effect on the estimated fair value.

 

ASC Topic 820 established a nine-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

 

Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

 

 

 

 F-7 

 

 

Indefinite Lived Intangibles and Goodwill Assets

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, "Business Combinations," where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer lists, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill.

 

The Company tests for indefinite lived intangibles and goodwill impairment in the fourth quarter of each year and whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, at February 28, 2022, the Company will perform a qualitative assessment of indefinite lived intangibles and goodwill related to any acquisitions completed during the fiscal year.

 

The impairment test will be conducted by the Company includes a two-step approach to determine whether it is more likely than not that impairment exists. If it is determined, after step one, that it is not more likely than not, that impairment exists, then no further analysis is conducted. The steps are as follows:

 

1.Based on the totality of qualitative factors, determine whether the carrying amount of the intangible asset may not be recoverable. Qualitative factors and key assumptions reviewed include the following:

 

  · Increases in costs, such as labor, materials or other costs that could negatively affect future cash flows. The Company assumed that costs associated with labor, materials, and other costs should be consistent with fair market levels. If the costs were materially higher than fair market levels, then such costs may adversely affect the future cash flows of the Company or reporting units.
     
  · Financial performance, such as negative or declining cash flows, or reductions in revenue may adversely affect recoverability of the recorded value of the intangible assets. During our analysis, the Company assumes that revenues should remain relatively consistent or show gradual growth month-to-month and quarter-to-quarter. If we report revenue declines, instead of increases or flat levels, then such condition may adversely affect the future cash flows of the Company or reporting units.
     
  · Legal, regulatory, contractual, political, business or other factors that could affect future cash flows. During our analysis, the Company assumes that the legal, regulatory, political or business conditions should remain consistent, without placing material pressure on the Company or any of its reporting units. If such conditions were to become materially different than what has been experienced historically, then such conditions may adversely affect the future cash flows of the Company or reporting units.
  · Entity-specific events such as losses of management, key personnel, or customers, may adversely affect future cash flows. During our analysis, the Company assumes that members of management, key personnel, and customers will remain consistent period-over-period. If not effectively replaced, the loss of members of management and key employees could adversely affect operations, culture, morale and overall success of the OTC Markets Group Inc. OTC Pink Basic Disclosure Guidelines (v3.1 June 24, 2021) Page 14 of 20 company. In addition, if material revenue from key customers is lost and not replaced, then future cash flows will be adversely affected.   
     
  · Industry or market considerations, such as competition, changes in the market, changes in customer dependence on our service offerings, or obsolescence could adversely affect the Company or its reporting units. We understand that the markets we serve are constantly changing, requiring us to change with them. During our analysis, we assume that we will address new opportunities in service offering and industries served. If we do not make such changes, then we may experience declines in revenue and cash flow, making it difficult to re-capture market share.   
     
  · Macroeconomic conditions such as deterioration in general economic conditions or limitations on accessing capital could adversely affect the Company. During our analysis, we acknowledge that macroeconomic factors, such as the economy, may affect our business plan because our customers may reduce budgets for our services. If there are material declines in the economy, which lead to reductions in revenue then such conditions may adversely affect the Company.

 

 

 

 F-8 

 

 

2.Compare the carrying amount of the intangible asset to the fair value.

 

3.If the carrying amount is greater than the fair value, then the carrying amount is reduced to reflect fair value.

 

Business Combinations

The acquisition of subsidiaries will be accounted for using the purchase method. The cost of the acquisition will be measured at the aggregate of the fair value, at the acquisition date, of assets received, liabilities incurred or assumed, and equity instruments issued by the Company in exchange for control of the acquiree. Any costs directly attributable to the business combination are expensed in the period incurred. The acquiree's identifiable assets and liabilities will be recognized at their fair values at the acquisition date.

 

Goodwill arising on acquisition will be recognized as an asset and initially measured at cost, being the excess of the cost of the business combination over the Company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized.

 

Stock-Based Compensation

As of November 30, 2021, the Company had no stock-based compensation arrangements. However, if issued, the Company will address the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise's equity instruments or that may be settled by the issuance of such equity instruments. The transactions will be accounted for using a fair-value-based method and recognized as expenses in our statement of operations.

 

Stock-based compensation expense recognized during the period will be based on the value of the portion of stock-based payment awards that is ultimately expected to vest. The stock-based compensation expense recognized in the consolidated statements of operations during the three months ended November 30, 2021 was zero.

 

Basic and Diluted Net Income (Loss) per Share Calculations

Income (Loss) per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

 

For the three months ended November 30, 2021, the Company excluded 125,025,000 shares of common stock as a result of the conversion of 75,000 shares of Series B Preferred stock and 13,334,000 shares of common stock as a result of the conversion of 1,000 shares of Series C Preferred stock from the calculation of earnings per share because the shares would be anti-dilutive.

 

Dilutive per share amounts are computed using the weighted-average number of common shares outstanding and potentially dilutive securities, using the treasury stock method if their effect would be dilutive.

 

Recently Adopted Accounting Pronouncements

The Company does not elect to delay complying with any new or revised accounting standards, but to apply all standards required of public companies, according to those required application dates.

 

Management reviewed accounting pronouncements issued during the quarter ended November 30, 2021, and no pronouncements were adopted during the period.

 

Management reviewed accounting pronouncements issued during the year ended February 28, 2021, and no pronouncements were adopted during the period.

 

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2022. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements.

 

 

 

 F-9 

 

 

In January 2017, the FASB issued 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and eliminating the requirement for a reporting unit with a zero or negative carrying amount to perform a qualitative assessment. Instead, under this pronouncement, an entity would perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and would recognize an impairment change for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects will be considered, if applicable. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

 

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. The measurement of deferred tax assets and liabilities is based on provisions of applicable tax law. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance based on the amount of tax benefits that, based on available evidence, is not expected to be realized. For the three months ended November 30, 2021, we used the federal tax rate of 21% in our determination of the deferred tax assets and liabilities balances.

 

   For the three months ended 
   November 30, 2021 
      
Current tax provision:     
Federal     
Taxable income  $ 
Total current tax provision  $ 
      
Deferred tax provision:     
Federal     
Loss carryforwards  $ 
Change in valuation allowance  $ 
Total deferred tax provision  $ 

 

3.REVENUE RECOGNITION

 

Although the Company currently does not have any revenue, when revenue recognition resumes, the Company will record the transactions in accordance with ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606"). In accordance with ASC 606, revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

 

The core principles of revenue recognition under ASC 606 includes the following five criteria:

 

1.Identify the contract with the customer Contract with our customers may be oral, written, or implied. A written and signed contract stating the terms and conditions is the preferred method and is consistent with most customers. The terms of a written contract may be contained within the body of an email, during which proposals are made and campaign plans are outlined, or it may be a stand-alone document signed by both parties. Contracts that are oral in nature are consummated in status and pitch meetings and may be later followed up with an email detailing the terms of the arrangement, along with a proposal document. No work is commenced without an understanding between the Company and our customers, that a valid contract exists.

 

 

 

 F-10 

 

 

2.Identify the performance obligations in the contract Our sales and account management teams define the scope of services to be offered, to ensure all parties are in agreement and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

 

3.Determine the transaction price Pricing is discussed and identified by the operations team prior to submitting a proposal to the customer. Based on the obligation presented, third-party service pricing is established, and time and labor are estimated, to determine the most accurate transaction pricing for our customer. Price is subject to change upon agreed parties, and could be fixed or variable, milestone focused or time and materials.

 

4.Allocate the transaction price to the performance obligations in the contract If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase (criteria 2 above).

 

5.Recognize revenue when (or as) we satisfy a performance obligation The Company will evaluate the performance obligations as revenue recognition materializes.

 

4.LIQUIDITY AND OPERATIONS

 

The Company had a net income of $131,449 for the nine months ended November 30, 2021, and net cash provided by operating activities of $145,538.

 

As of November 30, 2021, the Company did not have short-term borrowing relationship with any lenders.

 

While the Company hopes that its capital needs in the foreseeable future may be met by operations, there is no assurance that the Company will be able to generate enough positive cash flow to finance its growth and business operations in which event, the Company may need to seek outside sources of capital. There can be no assurance that such capital will be available on terms that are favorable to the Company or at all.

 

5.BUSINESS ACQUISITIONS

 

On July 18, 2021, the Company completed the acquisition of On OTT Now, Inc. ("On OTT Now"). As of that date, the Company's operating subsidiary, Bokoo TV, Inc. ("Bokoo TV"), merged with On OTT Now and the name of the combined subsidiary was Bokoo TV. The total purchase price of $7,500,000, was paid in the form of the issuance of ten thousand (75,000) shares of the Company's Series B Convertible Preferred Stock, at a liquidation preference of one hundred dollars ($100) per share.

 

Under the purchase method of accounting, the transactions were valued for accounting purposes at $7,500,000, which was the fair value of WebTegrity at the time of acquisition. The acquisition date estimated fair value of the consideration transferred and purchase price allocation consisted of the following:

 

Current assets  $ 
Fixed assets    
Liabilities    
Net assets    
Brand name    
Trade Secrets   4,500,000 
Goodwill   3,000,000 
Total purchase price   7,500,000 
      
Issuance of Series B Convertible Preferred Stock  $7,500,000 

 

The On OTT Now acquisition is based on a preliminary purchase price allocation, and include identifiable intangible assets, which were based on their estimated fair values as of the acquisition date. The excess of purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired was recorded as goodwill. The allocation of the purchase price required management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to identifiable intangible assets. These estimated fair values were based on information obtained from management of the acquired companies and historical experience and, with respect to the long-lived tangible and intangible assets, and have not been evaluated by an independent valuation firm.

 

 

 

 F-11 

 

 

5.INTANGIBLE ASSETS

 

Trade Secrets

On July 18, 2021, the Company acquired On OTT Now, and has calculated the value of the trade secrets as $4,500,000, which is included in other assets on the balance sheet. The Company has determined that the trade secrets have an indefinite useful life and are therefore not amortized. The Company will evaluate this intangible asset for impairment annually.

 

Goodwill

On July 18, 2021, the Company acquired On OTT Now, and has calculated the value of the goodwill as $3,000,000, which is included in other assets on the balance sheet.

 

6.NOTES PAYABLE

 

On April 25, 2009, the Company issued a promissory note (the "April 2009 Note") in the amount of $150,000, at which time the entire balance of $150,000 was received to cover operational expenses. The April 2009 Note bore interest at a rate of 10% per year and was payable upon demand. On May 11, 2021, the April 2009 Note was exchanged for common stock. At the time of the exchange, the balance due was $329,971, which included $179,971 of accrued interest. As of November 30, 2021, the balance due on the April 2009 Note was zero.

 

On September 23, 2014, the Company issued a promissory note (the "September 2014 Note") in the amount of $135,000, at which time the entire balance of $135,000 was received to cover operational expenses. The September 2014 Note bore interest at a rate of 12% per year and was payable upon demand. On May 11, 2021, the September 2014 Note was exchanged for common stock. At the time of the exchange, the balance due was $242,227, which included $107,227 of accrued interest. As of November 30, 2021, the balance due on the September 2014 Note was zero.

 

On September 16, 2015, the Company issued a promissory note (the "September 2015 Note") in the amount of $159,174, at which time the entire balance of $159,174 was received to cover operational expenses. The September 2014 Note bore interest at a rate of 10% per year and was payable upon demand. On May 11, 2021, the September 2015 Note was exchanged for common stock. At the time of the exchange, the balance due was $249,184, which included $90,010 of accrued interest. As of November 30, 2021, the balance due on the September 2015 Note was zero.

 

On January 1, 2019, the Company issued a promissory note (the "January 2019 Note") in the amount of $127,900, at which time the entire balance of $127,900 was received to cover operational expenses. The January 2019 Note bore interest at a rate of 5% per year and was payable upon demand. On May 11, 2021, the January 2019 Note was exchanged for common stock. At the time of the exchange, the balance due was $142,985, which included $15,085 of accrued interest. As of November 30, 2021, the balance due on the January 2019 Note was zero.

 

Below is a summary of the debt-for-equity exchange on May 11, 2021:

 

Note Date  Principal   Accrued
Interest
   Total Due    Gain on Exchange    Common Shares
Issued
 
April 25, 2009  $150,000   $179,971   $329,971           
September 23, 2014   135,000    107,227    242,227           
September 16, 2015   159,174    90,010    249,184           
January 1, 2019   127,900    15,085    142,985           
                          
Total  $572,074   $392,293   $964,367   $665,927    3,600,000 

 

The gain of $665,927 was calculated as the total amount due ($964,367) minus the value of the stock issued (3,600,000 x $0.0829 = $298,440).

 

7.CAPITAL STOCK

 

At November 30, 2021 and February 28, 2021, the Company's authorized stock consists of 500,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value of $0.001 per share. The rights, preferences and privileges of the holders of the preferred stock will be determined by the Board of Directors prior to issuance of such shares. The conversion of certain outstanding preferred stock could have a significant impact on our common stockholders. As of the date of this report, the Board has designated 10,000,000 shares of preferred stock, as Series A, 75,000 shares as Series B and 6,000 shares as Series C.

 

 

 

 F-12 

 

 

Series A Preferred

The Company designated 10,000,000 shares of preferred stock as Series A Preferred. The shares of Series A are not convertible to common stock, but each share of Series A preferred may cast the equivalent of 1,000 shares of common stock. Therefore, 10,000,000 shares of Series A preferred have the voting rights of 10,000,000,000 shares of common stock.

 

Series B Preferred

The Company designated 75,000 shares of preferred stock as Series B Preferred stock. Each shares of Series B Preferred is convertible into 1,667 shares of common stock and values at $100. The Series B Preferred Stock does not have voting rights except as required by law and with respect to certain protective provisions set forth in the Certificate of Designation of Series B Preferred Stock. The Company issued 75,000 shares of Series B Preferred stock to the owners of On OTT Now, Inc. from the merger with Bokoo TV. As of November 30, 2021, the Company has 75,000 shares of Series B Preferred stock outstanding.

 

Series C Preferred

The Company designated 6,000 shares of preferred stock as Series C Preferred stock. Each share of Series C preferred stock converts into 13,334 shares of common stock and is valued at $100. The Series C Preferred Stock does not have voting rights except as required by law and with respect to certain protective provisions set forth in the Certificate of Designation of Series C Preferred Stock. The Company issued 1,000 shares of Series C Preferred stock to investors for $100,000. As of November 30, 2021, the Company has 1,000 shares of Series C Preferred stock outstanding.

 

8.STOCK OPTIONS AND WARRANTS

 

As of November 30, 2021, no stock options or warrants were outstanding.

 

9.RELATED PARTIES None noted.

 

10.CONCENTRATIONS None noted.

 

11.COMMITMENTS AND CONTINGENCIES

 

Leases

In February 2016, the FASB issued ASU 2016-02, "Leases" Topic 842, which amends the guidance in former ASC Topic 840, Leases ("ASC 840"). The new standard increases transparency and comparability most significantly by requiring the recognition by lessees of right-of-use ("ROU") assets and lease liabilities on the balance sheet for all leases longer than 12 months. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. For lessees, leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement, over the expected term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, current operating lease liabilities and non-current operating lease liabilities. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and operating lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, current liabilities, and long-term liabilities on our consolidated balance sheets.

 

When the Company initiates a lease, we will record the transaction in accordance with ASC 840.

 

Legal Matters

The Company may be involved in legal actions and claims arising in the ordinary course of business, from time to time, none of which at this time the Company considers to be material to the Company's business or financial condition.

 

12.SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION

 

During the nine months ended November 30, 2021, there were the following non-cash activities.

 

  · Certain lenders were issued 3,600,000 shares of common stock, valued at $298,440, in exchange for notes payable valued at $964,367, resulting in a gain of $665,927.
  · The Company issued 58,000,000 shares of common stock to the Custodian.
  · The Company issued 7,500,000 shares of common stock to a lender.

 

 

 

 F-13 

 

 

13.SUBSEQUENT EVENTS

 

Management has evaluated subsequent events according to ASC TOPIC 855 as of the date of the financial statements and has determined that no event is reportable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 F-14 

 

Transnational Group, Inc.
Unaudited Consolidated Balance Sheet

 

    February 28,
2021
      February 28,
2020
 
    (unaudited)      (unaudited)  
ASSETS               
CURRENT ASSETS              
Cash   $    $  
Trade and other receivables           
Advance on acquisition           
Prepaid expenses - claims           
Mining equipment           
Mining equipment awaiting shipment           
TOTAL CURRENT ASSETS           
               
OTHER ASSETS              
Goodwill and intangible assets           
TOTAL OTHER ASSETS           
               
TOTAL ASSETS   $    $  
               
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)             
                
CURRENT LIABILITIES              
Loans and advances from stockholders   $953,811    $ 900,152  
Accrued liabilities           
Payables to stock holders           
TOTAL CURRENT LIABILITIES    953,811      900,152  
               
TOTAL LIABILITIES    953,811      900,152  
               
SHAREHOLDERS' EQUITY (DEFICIT)              
Preferred stock, $0.001 par value; 100,000,000 Authorized shares: zero outstanding           
Common stock, $0.001 par value; 500,000,000 authorized shares; 46,000,000 and 39,860,508 shares issued and outstanding, respectively     46,000        39,861  
Additional paid in capital    17,357,449      17,363,588   
Accumulated deficit    (18,357,260)     (18,303,601 )
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)    (953,811)     (900,152 )
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)   $    $ –   

 

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

 

 

 

 F-15 

 

 

Transnational Group, Inc.
Unaudited Consolidated Income Statement

 

   Year Ended 
   February 28, 2021   February 28, 2020 
   (unaudited)   (unaudited) 
REVENUE  $   $ 
           
COST OF REVENUE        
Gross Profit        
           
OPERATING EXPENSES          
Salaries and outside services        
Selling, general and administrative expenses        
Depreciation and amortization        
TOTAL OPERATING EXPENSES        
           
INCOME (LOSS) FROM OPERATIONS BEFORE OTHER INCOME AND TAXES        
           
OTHER INCOME (EXPENSE)          
Other expense        
Gain on extinguishment of debt        
Interest expense   (53,659)   (55,673)
TOTAL OTHER INCOME (EXPENSE)   (53,659)   (55,673)
           
INCOME/(LOSS) FROM OPERATIONS BEFORE PROVISION FOR TAXES   (53,659)   (55,673)
           
PROVISION (BENEFIT) FOR INCOME TAXES        
           
NET INCOME/(LOSS)   (53,659)   (55,673)
           
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS  $(53,659)  $(55,673)

 

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

 

 

 

 F-16 

 

 

Transnational Group, Inc.

Unaudited Consolidated Statement of Stockholders' Equity

 

 

                   Additional         
                   Paid-in   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Deficit   Total 
                                                     
   Year ended February 28, 2020 
Balance, February 28, 2019      $    39,860,508   $39,861   $17,363,588   $(18,247,928)  $(844,479)
                                    
Net loss                       (13,488)   (13,488)
                                    
Balance, May 31, 2019      $    39,860,508   $39,861   $17,363,588   $(18,261,416)  $(857,967)
                                    
Net loss                       (13,488)   (13,488)
                                    
Balance, August 31, 2019      $    39,860,508   $39,861   $17,363,588   $(18,274,904)  $(871,455)
                                    
Net loss                       (13,341)   (13,341)
                                    
Balance, November 30, 2019      $    39,860,508   $39,861   $17,363,588   $(18,288,245)  $(884,796)
                                    
Net loss                       (15,356)   (15,356)
                                    
Balance, February 28, 2020      $    39,860,508   $39,861   $17,363,588   $(18,303,601)  $(900,152)

 

 

                   Additional         
                   Paid-in   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Deficit   Total 
                                                     
   Year ended February 28, 2021 
Balance, February 28, 2020      $    39,860,508   $39,861   $17,363,588   $(18,303,601)  $(900,152)
                                    
Net loss                       (13,635)   (13,635)
                                    
Balance, May 31, 2020      $    39,860,508   $39,861   $17,363,588   $(18,317,236)  $(913,787)
                                    
Net loss                       (13,488)   (13,488)
                                    
Balance, August 31, 2020      $    39,860,508   $39,861   $17,363,588   $(18,330,724)  $(927,275)
                                    
Net loss                       (13,341)   (13,341)
                                    
Balance, November 30, 2020      $    39,860,508   $39,861   $17,363,588   $(18,344,065)  $(940,616)
                                    
Stock issuance to custodian           6,139,492    6,139    (6,139)        
                                    
Net loss                       (13,195)   (13,195)
                                    
Balance, February 28, 2021      $    46,000,000   $46,000   $17,357,449   $(18,357,260)  $(953,811)

 

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

 

 

 

 F-17 

 

 

Transnational Group, Inc.

Unaudited Consolidated Statement of Cash Flows

 

   Six Months Ended 
   February 28, 2021   February 28, 2020 
   (unaudited)   (unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net gain (loss) from continued operations  $(53,659)  $(53,673)
Adjustment to reconcile net loss to net cash (used in) operating activities        
Non-cash compensation expense        
Non-cash service expense        
Change in assets and liabilities:        
(Increase) Decrease in:          
Accounts payable        
Accrued expenses   53,659    55,673 
           
NET CASH USED IN OPERATING ACTIVITIES        
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Acquisition of On OTT Now        
           
NET CASH PROVIDED BY INVESTING ACTIVITIES        
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Issuance of Series A Pref        
Issuance of Series B Pref        
Issuance of Series C Pref        
           
NET CASH PROVIDED BY FINANCING ACTIVITIES        
           
NET INCREASE / (DECREASE) IN CASH        
           
CASH, BEGINNING OF PERIOD        
           
CASH, END OF PERIOD  $   $ 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION          
Interest paid  $   $ 
Taxes paid  $   $ 
           
Non-cash financing activities:          
Issuance of common stock to lenders  $6,139   $ 

 

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

 

 

 

 F-18 

 

 

TRANSNATIONAL GROUP, INC. AND SUBSIDIARIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

 

FEBRUARY 28, 2021

 

1. ORGANIZATION AND LINE OF BUSINESS

 

Organization

 

Transnational Group, Inc. (“we”, “us”, “our” or the “Company”) is a Nevada corporation formerly known as Vitaminoverrun.com Corp, Apache Motor Corporation, and Transnational Automotive Group, Inc. On January 31, 2014, we changed the name of the Company from Transnational Automotive Group, Inc. to Transnational Group, Inc. to reflect a new plan of strategically acquiring companies that would offer products and services globally. Currently, the Company does not have a principal place of business, but has a mailing address in Utah. The Company was designated as a shell from 2015 until the current year. On September 14, 2020, the Nevada District Court appointed a custodian to assist the Company in reestablishing operations.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. As of February 28, 2021, the Company had no assets, liabilities or revenue and has historically reported net losses, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion. The Company has obtained funds from its lenders and investors since its inception through February 28, 2021. It is management’s plan to generate additional working capital from increasing sales from the Company’s service offerings, in addition to acquiring profitable service providers.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies of Transnational Group is presented to assist in understanding the Company’s Consolidated Financial Statements. The Consolidated Financial Statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the Consolidated Financial Statements.

 

Accounts Receivable

 

The Company has not yet extended credit to its customers. Accounts receivable are customer obligations due under normal trade terms. Once the Company resumes offering credit to its customers, we will perform continuing credit evaluations of our customers’ financial condition. Management will review accounts receivable on a regular basis, based on contractual terms and how recently payments have been received to determine if any such amounts will potentially be uncollected. The Company will include any balances that are determined to be uncollectible in its allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable would be written off. The balance of the allowance account at February 28, 2021 and February 28. 2020 were both zero.

 

 

 

 F-19 

 

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Since the Company has limited operations, estimates are primarily used in measuring liabilities, fair value assumptions in accounting for business combinations and analyzing goodwill, intangible assets, and long-lived asset impairments and adjustments.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of February 28, 2021, the Company had a cash balance of zero.

 

Property and Equipment

 

Property and equipment are stated at cost, and are depreciated or amortized using the straight-line method over the following estimated useful lives:

 

Furniture, fixtures & equipment 7 Years
Computer equipment 5 Years
Commerce server 5 Years
Computer software 3 - 5 Years
Leasehold improvements Length of the lease

 

Since the Company had no depreciable assets, depreciation expense was zero for the year ended February 28, 2021.

 

Revenue Recognition

 

During the period, the Company had no revenue. However, when we do record revenue, it will be in accordance with ASC 606. The deferred revenue and customer deposits as of February 28, 2021, and February 28, 2020 were both zero.

 

Research and Development

 

Research and development costs are expensed as incurred. Total research and development costs were zero for the year ended February 28, 2021.

 

Advertising Costs

 

The Company expenses the cost of advertising and promotional materials when incurred. Total advertising cost was zero for the year ended February 28, 2021.

 

 

 

 F-20 

 

 

Fair value of financial instruments

 

The Company’s financial instruments, including cash and cash equivalents and notes payable, are carried at cost, which approximates their fair value, due to the relatively short maturity of these instruments. As of February 28, 2021, the Company’s notes payable have stated borrowing rates that are consistent with those currently available to the Company and, accordingly, the Company believes the carrying value of these debt instruments approximates their fair value.

 

Fair value is defined as the price to sell an asset or transfer a liability, between market participants at the measurement date. Fair value measurements assume that the asset or liability is (1) exchanged in an orderly manner, (2) the exchange is in the principal market for that asset or liability, and (3) the market participants are independent, knowledgeable, able and willing to transact an exchange. Fair value accounting and reporting establishes a framework for measuring fair value by creating a hierarchy for observable independent market inputs and unobservable market assumptions and expands disclosures about fair value measurements. Considerable judgment is required to interpret the market data used to develop fair value estimates. As such, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current exchange. The use of different market assumptions and/or estimation methods could have a material effect on the estimated fair value.

 

ASC Topic 820 established a nine-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:

 

·Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

 

·Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

 

·Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

 

Stock-Based Compensation

 

As of February 28, 2021, the Company had no stock-based compensation arrangements. However, if issued, the Company will address the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The transactions will be accounted for using a fair-value-based method and recognized as expenses in our statement of operations.

 

Stock-based compensation expense recognized during the period will be based on the value of the portion of stock-based payment awards that is ultimately expected to vest. The stock-based compensation expense recognized in the consolidated statements of operations during the year ended February 28, 2021 was zero.

 

Basic and Diluted Net Income (Loss) per Share Calculations

 

Income (Loss) per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

 

For the year ended February 28, 2021, the Company did not exclude any shares from the calculation of earnings per share.

 

Dilutive per share amounts are computed using the weighted-average number of common shares outstanding and potentially dilutive securities, using the treasury stock method if their effect would be dilutive.

 

Recently Adopted Accounting Pronouncements

 

The Company does not elect to delay complying with any new or revised accounting standards, but to apply all standards required of public companies, according to those required application dates.

 

Management reviewed accounting pronouncements issued during the quarter ended February 28, 2021, and no pronouncements were adopted during the period.

 

 

 

 F-21 

 

 

Recently Issued Accounting Pronouncements Not Yet Adopted

 

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2022. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements.

 

In January 2017, the FASB issued 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and eliminating the requirement for a reporting unit with a zero or negative carrying amount to perform a qualitative assessment. Instead, under this pronouncement, an entity would perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and would recognize an impairment change for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects will be considered, if applicable. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

 

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. The measurement of deferred tax assets and liabilities is based on provisions of applicable tax law. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance based on the amount of tax benefits that, based on available evidence, is not expected to be realized. For the year ended February 28, 2021, we used the federal tax rate of 21% in our determination of the deferred tax assets and liabilities balances.

 

Year Ended

February 28, 2021

 

Current tax provision:     
Federal     
Taxable income  $ 
Total current tax provision  $ 
      
Deferred tax provision     
Federal     
Loss carryforwards  $ 
Change in valuation allowance  $ 
Total deferred tax provision  $ 

 

 

 

 F-22 

 

 

3. REVENUE RECOGNITION

 

Although the Company currently does not have any revenue, when revenue recognition resumes, the Company will record the transactions in accordance with ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”). In accordance with ASC 606, revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

 

The core principles of revenue recognition under ASC 606 includes the following five criteria:

 

1.      Identify the contract with the customer

 

Contract with our customers may be oral, written, or implied. A written and signed contract stating the terms and conditions is the preferred method and is consistent with most customers. The terms of a written contract may be contained within the body of an email, during which proposals are made and campaign plans are outlined, or it may be a stand-alone document signed by both parties. Contracts that are oral in nature are consummated in status and pitch meetings and may be later followed up with an email detailing the terms of the arrangement, along with a proposal document. No work is commenced without an understanding between the Company and our customers, that a valid contract exists.

 

2.      Identify the performance obligations in the contract

 

Our sales and account management teams define the scope of services to be offered, to ensure all parties are in agreement and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

 

3.      Determine the transaction price

 

Pricing is discussed and identified by the operations team prior to submitting a proposal to the customer. Based on the obligation presented, third-party service pricing is established, and time and labor are estimated, to determine the most accurate transaction pricing for our customer. Price is subject to change upon agreed parties, and could be fixed or variable, milestone focused or time and materials.

 

4.      Allocate the transaction price to the performance obligations in the contract

 

If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase (criteria 2 above).

 

5.      Recognize revenue when (or as) we satisfy a performance obligation

 

The Company will evaluate the performance obligations as revenue recognition materializes.

 

 

 

 F-23 

 

 

4. LIQUIDITY AND OPERATIONS

 

The Company had a net loss of $53,659 for the year ended February 28, 2021, and net cash used in operating activities of zero.

 

As of February 28, 2021, the Company did not have short-term borrowing relationship with any lenders.

 

While the Company hopes that its capital needs in the foreseeable future may be met by operations, there is no assurance that the Company will be able to generate enough positive cash flow to finance its growth and business operations in which event, the Company may need to seek outside sources of capital. There can be no assurance that such capital will be available on terms that are favorable to the Company or at all.

 

5. INTANGIBLE ASSETS

 

As of February 28, 2021, the Company had no goodwill or intangible assets.

 

6. NOTES PAYABLE

 

On April 25, 2009, the Company issued a promissory note (the “April 2009 Note”) in the amount of $150,000, at which time the entire balance of $150,000 was received to cover operational expenses. The April 2009 Note bears interest at a rate of 10% per year and was payable upon demand. As of February 28, 2021, the balance due on the April 2009 Note was $327,012, which included $177,012 of accrued interest. During the year ended February 28, 2021, the Company included $15,041 in interest expense from the April 2009 Note.

 

On September 23, 2014, the Company issued a promissory note (the “September 2014 Note”) in the amount of $135,000, at which time the entire balance of $135,000 was received to cover operational expenses. The September 2014 Note bears interest at a rate of 12% per year and was payable upon demand. As of February 28, 2021, the balance due on the September 2014 Note was $239,031, which included $104,031 of accrued interest. During the year ended February 28, 2021, the Company included $16,244 in interest expense from the September 2014 Note.

 

On September 16, 2015, the Company issued a promissory note (the “September 2015 Note”) in the amount of $159,174, at which time the entire balance of $159,174 was received to cover operational expenses. The September 2014 Note bore interest at a rate of 10% per year and was payable upon demand. As of February 28, 2021, the balance due on the September 2015 Note was $246,044, which included $86,870 of accrued interest. During the year ended February 28, 2021, the Company included $15,961 in interest expense from the September 2015 Note.

 

On January 1, 2019, the Company issued a promissory note (the “January 2019 Note”) in the amount of $127,900, at which time the entire balance of $127,900 was received to cover operational expenses. The January 2019 Note bore interest at a rate of 5% per year and was payable upon demand. As of February 28, 2021, the balance due on the January 2019 Note was $141,724, which included $13,824 of accrued interest. During the year ended February 28, 2021, the Company included $6,413 in interest expense from the January 2019 Note.

 

 

 

 F-24 

 

 

7. CAPITAL STOCK

 

At February 28, 2021 and February 28, 2020, the Company’s authorized stock consists of 500,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value of $0.001 per share. The rights, preferences and privileges of the holders of the preferred stock will be determined by the Board of Directors prior to issuance of such shares. The conversion of certain outstanding preferred stock could have a significant impact on our common stockholders.

 

8. STOCK OPTIONS AND WARRANTS

 

As of February 28, 2021, no stock options or warrants were outstanding.

 

9. RELATED PARTIES

 

None noted

 

10. CONCENTRATIONS

 

None noted

 

11. COMMITMENTS AND CONTINGENCIES

 

Leases

 

In February 2016, the FASB issued ASU 2016-02, “Leases” Topic 842, which amends the guidance in former ASC Topic 840, Leases (“ASC 840”). The new standard increases transparency and comparability most significantly by requiring the recognition by lessees of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases longer than 12 months. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. For lessees, leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement, over the expected term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, current operating lease liabilities and non-current operating lease liabilities. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, current liabilities, and long-term liabilities on our consolidated balance sheets.

 

When the Company initiates a lease, we will record the transaction in accordance with ASC 840.

 

Legal Matters

 

The Company may be involved in legal actions and claims arising in the ordinary course of business, from time to time, none of which at this time the Company considers to be material to the Company’s business or financial condition.

 

12. SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION

 

During the year ended February 28, 2021, there were the following non-cash activities.

 

 -Certain Certain lenders were issued 6,139,492 shares of common stock.

 

13. SUBSEQUENT EVENTS

 

Management has evaluated subsequent events according to ASC TOPIC 855 as of the date of the financial statements and has determined that the following subsequent events are reportable.

 

-On May 11, 2021, lenders holding our notes payable exchanged the outstanding balance of $964,367 for 3,600,000 shares of common stock.

 

 

 

 F-25 

 

 

TRANSNATIONAL GROUP, INC.

 

UNAUDITED PRO FORMA FINANCIAL STATEMENTS

 

The following unaudited pro forma financial statements are based on the historical unaudited financial statements of Transnational Group, Inc. (“TAMG”) and On OTT Now, Inc. (“OTT”) after giving effect to TAMG’s acquisition of OTT (the “Acquisition”) and the assumptions and adjustments described in the accompanying notes to the unaudited pro forma financial statements. The effective date of the Acquisition was July 18, 2021.

 

Unaudited Pro Forma Balance Sheet

 

The following unaudited pro forma balance sheet has been derived from the balance sheet of TAMG at February 28, 2021 (unaudited), and adjusts such information to give effect to the acquisition of OTT, as if the acquisition had occurred at February 28, 2021. The unaudited pro forma balance sheet is presented for informational purposes only and does not purport to be indicative of the financial condition that would have resulted if the acquisition had been consummated at February 28, 2021. The unaudited pro forma balance sheet should be read in conjunction with the notes thereto and OTT's financial statements and related notes thereto contained elsewhere herein.

 

Transnational Group, Inc.

Unaudited Proforma Balance Sheet

February 28, 2021

 

   Transnational Group  On OTT Now  Proforma Adjustments  Proforma
ASSETS            
CURRENT ASSETS                    
Cash  $   $354   $   $354 
Trade and other receivables                 
Advance on acquisition                 
Prepaid expenses – claims                 
Mining equipment                 
Mining equipment awaiting shipment                 
TOTAL CURRENT ASSETS       354        354 
                     
OTHER ASSETS                    
Goodwill and intangible assets                
TOTAL OTHER ASSETS                
                     
                     
  TOTAL ASSETS  $   $354   $   $354 
                     
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)                    
                     
CURRENT LIABILITIES                    
Loans and advances from stockholders  $953,811   $   $   $953,811 
Accrued liabilities       1,165        1,165 
Payables to stock holders                
TOTAL CURRENT LIABILITIES   953,811    1,165        954,976 
                     
TOTAL LIABILITIES   953,811    1,165        954,976 
                     
SHAREHOLDERS' EQUITY (DEFICIT)                    
Preferred stock, $0.001 par value;                    
100,000,000 Authorized shares: zero outstanding                
Common stock, $0.001 par value;                    
500,000,000 authorized shares; 46,000,000 and 39,860,508 shares                    
 issued and outstanding, respectively   46,000    9,985        55,985 
Additional paid in capital   17,357,449            17,357,449 
Accumulated deficit   (18,357,260)   (10,796)       (18,368,056)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)   (953,811)   (811)       (954,622)
                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)  $   $354   $   $354 

 

See accompanying notes to unaudited pro forma financial statements.

 

 F-26 

 

 

Unaudited Pro Forma Statement of Operations

 

Year Ended February 28, 2021

 

The following pro forma statement of operations has been derived from the statement of operation of TAMG at February 28, 2021, and adjusts such information to give effect to the acquisition of OTT, as if the acquisition had occurred at March 1, 2020. The pro forma statement of operations is presented for informational purposes only and does not purport to be indicative of the results of operations that would have resulted if the acquisition had been consummated at March 1, 2020. The pro forma statement of operations should be read in conjunction with OTT's financial statements and related notes thereto contained elsewhere in this filing.

 

Transnational Group, Inc.

Unaudited Proforma Income Statement

For the year ended February 28, 2021

 

   Transnational Group  On OTT Now  Proforma Adjustments  Proforma
             
REVENUE  $   $   $   $ 
                     
COST OF REVENUE                
Gross Profit                
                     
OPERATING EXPENSES                    
Salaries and outside services       5,500        5,500 
Selling, general and administrative expenses       131        131 
Depreciation and amortization                
TOTAL OPERATING EXPENSES       5,631        5,631 
                     
INCOME (LOSS) FROM OPERATIONS BEFORE OTHER INCOME AND TAXES       (5,631)       (5,631)
                     
OTHER INCOME (EXPENSE)                    
Other expense                
Gain on extinguishment of debt                
Interest expense   (53,659)           (53,659)
TOTAL OTHER INCOME (EXPENSE)   (53,659)           (53,659)
                     
INCOME/(LOSS) FROM OPERATIONS BEFORE PROVISION FOR TAXES   (53,659)   (5,631)       (59,290)
                     
PROVISION (BENEFIT) FOR INCOME TAXES                
                     
NET INCOME/(LOSS)   (53,659)   (5,631)       (59,290)
                     
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS  $(53,659)  $(5,631)  $   $(59,290)

 

See accompanying notes to unaudited pro forma financial statements.

 

 

 

 F-27 

 

 

Notes to Unaudited Pro Forma Financial Statements

 

Note 1. Basis of Unaudited Pro Forma Presentation

 

The unaudited pro forma balance sheet as of February 28, 2021, and the unaudited pro forma statements of operations for the year ended February 28, 2021, are based on the historical financial statements of TAMG and OTT after giving effect to TAMG’s acquisition of substantially all of the assets of OTT (the "Acquisition") and the assumptions and adjustments described in the notes herein. No pro forma adjustments were required to conform TAMG’s accounting policies to OTT's accounting policies.

 

The unaudited pro forma balance sheet as of February 28, 2021, is presented as if the Acquisition had occurred on February 28, 2021. The unaudited pro forma statement of operations of TAMG and OTT for the year ended February 28, 2021, is presented as if the Acquisition had taken place on March 1, 2020.

 

The unaudited pro forma financial statements are not intended to represent or be indicative of the results of operations or financial position of TAMG that would have been reported had the Acquisition been completed as of the dates presented, and should not be taken as representative of the future results of operations or financial position of TAMG.

 

Note 2. OTT Acquisition

 

Effective July 18, 2021, OTT merged with and into Bokoo TV, Inc., a wholly-owned subsidiary of TAMG (the “Merger Agreement”). TAMG has adopted the business plan of OTT as its overall corporate business plan. Pursuant to the Merger Agreement, TAMG issued 10,000,000 shares of Series A Preferred Stock and 75,000 shares of Series B Preferred Stock.

 

Acquisition-related expenses, including legal and accounting fees and other external costs directly related to the acquisition, were expensed as incurred.

 

Note 3. Pro Forma Adjustments

 

With respect to the unaudited pro forma balance sheet, no pro forma adjustments were made.

 

With respect to the unaudited pro forma balance sheet, no pro forma adjustments are included. With respect to the unaudited pro forma statement of income, pro forma adjustments were made only to net income (loss) per common share and weighted average shares outstanding, which adjustments were made to reflect the issuances of 10,000,000 shares of Series A Preferred Stock and 75,000 shares of Series B Preferred Stock in connection with the Merger Agreement.

 

 

 F-28 

 

 

PART III – EXHIBITS

 

Index to Exhibits

 

Exhibit No.:   Description of Exhibit   Incorporated by Reference to:

 

2. Charter and Bylaws

 
2.1   Certificate of Amendment to Designation   Filed previously
2.2   Amended and Restated Articles of Incorporation   Filed previously
2.3   Certificate of Custodian   Filed previously
2.4   Certificate of Designation   Filed previously

 

4. Subscription Agreement

 
4.1   Subscription Agreement   Filed previously

 

6. Material Agreements

 
6.1   Agreement and Plan of Merger   Filed previously
6.2   Series A Preferred Stock Purchase Agreement   Filed previously

 

11. Consents

 
11.1   Consent of Newlan Law Firm, PLLC (see Exhibit 12.1)   Filed previously

 

12. Opinion re: Legality

 
12.1   Opinion of Newlan Law Firm, PLLC   Filed previously
             

 

 

 

 

 

 III-1 

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of 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 Lehi, State of Utah, on March 7, 2022.

 

 

TRANSNATIONAL GROUP, INC.

 

 

By: /s/ Barry Grunberger

Barry Grunberger

Chief Executive Officer

 

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

 

 

 

By: /s/ Barry Grunberger

Barry Grunberger

Chief Executive Officer, Acting Chief Financial Officer

[Principal Accounting Officer], Secretary and Director

 

March 7, 2022

 

 

 

By: /s/ Andrew Van Noy

Andrew Van Noy

Director

 

 

March 7, 2022

 

 

 

By: /s/ Deepankar Katyal

Deepankar Katyal

Director

 

 

March 7, 2022

 

 

 

 

 

 

 III-2