UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURUTIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 20142017
Commission file number 333-187544000-55547
Ticket Corp.
(Exact Name of Registrant as Specified in Its Charter)
| Nevada | 46-1838178 | |
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
1135 Terminal Way, Suite 209
Reno, NV 89502
e-mail: ticketcorp1@yahoo.com
Telephone (775) 352-3936 Fax (775) 201-8190
(Address of Principal Executive Offices, Zip Code & Telephone Number)
Jill Arlene Robbins, P.A.
525 93 Street
Surfside, Florida 33154
Telephone: (305) 531-1174 Facsimile: (305) 531-1274
Email: jillarlene@jarepa.com
(Name, Address and Telephone Number of Agent for Service)
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to section 12(g) of the Act:
Common Stock, $0.001 par value
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o☐ No þ☑
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act Yes o☐ No þ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ☑ No o☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ☑ No o☐
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. oþ
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company þ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o☐ No þ☑
As of June 30, 2017, the last day of registrant’s second fiscal quarter, the aggregate market value of the registrant’s common stock, $0.001 par value, held by non-affiliates, computed by reference to the price at which the common equity was last sold prior to June 30, 2017, was approximately $3,750,000. For purposes of the above statement only, all directors, executive officers and 10% shareholders are assumed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
As of April 8, 2015,March 26, 2018, the registrant had 48,000,000 shares of common stock issued and outstanding. No market value has been computed based upon the fact that no active trading market had been established.
Documents Incorporated By Reference None
TICKET CORP.
TABLE OF CONTENTS
| Page No. | ||
| Part I | ||
| Item 1. | Business | 3 |
| Item 1A. | Risk Factors | 11 |
| Item 1B. | Unresolved Staff Comments | 18 |
| Item 2. | Properties | |
| Item 3. | Legal Proceedings | |
| Item 4. | Mine Safety Disclosures | |
| Part II | ||
| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
| Item 6. | Selected Financial Data | 20 |
| Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | 27 |
| Item 8. | Financial Statements and Supplementary Data | |
| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 27 |
| Item 9A. | Controls and Procedures | |
| Item 9B. | Other Information | |
| Part III | ||
| Item 10. | Directors and Executive Officers | |
| Item 11. | Executive Compensation | |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
| Item 13. | Certain Relationships and Related Transactions | |
| Item 14. | Principal Accounting Fees and Services | |
| Part IV | ||
| Item 15. | Exhibits | |
| Signatures |
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Part I
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
| · | our ability to manage our business despite operating losses and cash outflows; |
| · | our ability to obtain sufficient capital or strategic business arrangements to fund our operations and expansion plans, including meeting our financial obligations under various licensing and other strategic arrangements and the funding of our clinical trials for product candidates in our development programs; |
| · | our ability to build and maintain the management and human resources infrastructure necessary to support the growth of our business; |
The forward-looking statements containedfactors discussed herein, including those selected risks described in Item 1A. “Risk Factors” and elsewhere in this annual report are basedAnnual Report on current expectationsForm 10-K and beliefs concerning future developmentsin the Company’s other periodic filings with the Securities and the potential effects on the parties and the transaction. There can be no assurance that future developments actually affecting us will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some ofExchange Commission (the “SEC”) which are beyond the parties’ control) or other assumptions that mayavailable for review at www.sec.gov under “Search for Company Filings” could cause actual results or performanceand developments to be materially different from those expressed or implied by such statements. All forward-looking statements attributable to us are expressly qualified in their entirety by these and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements.statements, which speak only as of the date hereof.
Except as required by law, the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Unless otherwise indicated or the context otherwise requires, all references in this Form 10-K to “we,” “us,” “our,” “our company,” “Ticket Corp.” or the “Company” refer to Ticket Corp.
Item 1. Business
General Information
Ticket Corp. was incorporated in the State of Nevada on January 17, 2013. We are an active development stage company withhave the intention of becoming a leading seller of tickets to concerts, sporting events, theatre and other entertainment events. Our current target market is the San Francisco Bay area.United States.
Our intent is to developcapture the consumer live event ticket and merchandise market through our mobile software application (“app”) that(app) Shindig. This will allow the general publicconsumers to purchase tickets and performers merchandise and apparel using their smart phones and tablets such as Android and Apple enabled devices. The app, when purchased and downloaded by the customer will allow them to receive news and information on their favorite team or performer well as general and premium tickets with barcodes directly ontoand licensed event and performer merchandise through their Android and Apple smart phones and tablets. When our customers arrive at the event venue, the unique barcode on their smart phones or tabletsmobile devices. Users will be verifiedable to peruse and preview seats and merchandise to shows near their current location as well as locations worldwide.
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We also provide social media communications that can connect consumer with friends and others who are attending the existing scanners already in use at event venues. Our software applicationssame event. Users will receive updated information and videos from the performers and teams that they are designed to reduce the risk of lost tickets and ticket fraud. Additional features will include recommended parking locations at the venue, proper venue entrance instructions, and allow our ticket purchasers to directly purchase event related merchandise.following.
We also intend to process orders from our customers and track their buying history. We intend to use our potential customers’ purchasing history to make recommendations for upcoming events based upon their previous purchases. Our intention is to maintain our potential customers’ purchasing history as private information and not sell or share this information to others.
Our business plan is based in part on our ability to purchase and re-sell tickets and sell licensed merchandise for special events, attractions, and shows / exhibits. Management estimates it will take 6 months from the completion of our recent offering to implement our plan of operations to the point where we will be able to generate additionalWe are currently generating revenue from ticket and app sales. There is no guarantee that we will earn revenue in six months or ever.merchandise sales through our app. We intend to use the net proceeds from our recent offering to further develop our business operations which isto provide real time delivery of merchandise at the sale of our software application that will allowshow allowing consumers to avoid the general publicmerchandise booths and in some cases have the item delivered to purchase event tickets using their smart phones or tablets such as Android and Apple enabled devices. This will allow our customers to receive their tickets with barcodes directly onto their Android and Apple smart phones and tablets. Management estimates it will take $49,500 to accomplish our business goals. (See "Business of the Company" and "Use of Proceeds".)seats.
We are an active development stage company with $113,500$384,823 in revenues.revenues since inception. The mailing address for the principal executive offices is 1135 Terminal Way, Suite 209, Reno, NV 89502. The telephone number is (775)352-3936.
We received our initial funding of $33,000 through the sale of common stock to Russell Rheingrover, an officer and director who purchased 33,000,000 shares of our common stock at $0.001 per share on January 31, 2013. He currently owns 69% of the outstanding common stock of the company.Company. (See “Risk Factors”, specifically page 10, to be advised of the risks to other shareholders due to his majority ownership). Our financial statements from inception (January 17, 2013) through December 31, 20142017 report $113,500$384,823 in revenues and a net lossan accumulated deficit of $51,721. Based on the 48,000,000 shares outstanding at December 31, 2014 the implied aggregate market price of our stock at the issue price of $0.0033 is $158,400 in aggregate. As is it likely the company will have deficits during the first year, these deficits will affect the implied aggregate price of the common stock. $373,753. Our total stockholders’ equity as of December 31, 20142017 is $30,779. $(294,254). Our independent auditor has issued an audit opinion for Ticket Corp. which includes a statement expressing substantial doubt as to our ability to continue as a going concern.
We completed our initial offering and are currently movingcontinuing to move forward with plans to executein the execution of our full business plan. Our assets at December 31, 20142017 were $281, 577 which included $30,577$3,824 in cash, $11,000 in accounts receivable and $240,000 in a Ticket Assignment Agreement.cash. Management estimates our current monthly “burn rate” to be $5,000 and estimate our current cash and receivables will last until August 2015,through mid-April 2018, if no additional revenues are realized.
Mr. Rheingrover, who currently owns 69% of our outstanding voting stock, is also the Chief Executive Officer of Jiffy Tickets, a national reseller of concert, theater, sporting and event tickets. He currently devotes approximately 5 hours of his business time to our affairs and the balance to Jiffy Tickets. He owes a fiduciary duty of loyalty to us, but also owes similar fiduciary duties to Jiffy Tickets. Due to his responsibilities to serve both companies, there is potential for conflicts of interest. He will use every effort to avoid material conflicts of interest generated by his responsibilities to both companies, but no assurance can be given that material conflicts will not arise which could be detrimental to our operations and financial prospects.
There is no current public market for our securities. As our stock is not yet publicly traded, investors should be aware they probably will be unable to sell their shares and their investment in our securities is not liquid. We anticipate makingare currently working with a market maker on an application for trading of our common stock on the over the counter bulletin board within the next 30 days.board. We can provide no assurance that our shares will be traded on the bulletin board, or if traded, that a public market will materialize.
Description of Business
Executive Summary
Ticket Corp. is an active development stage company with a plan to make the purchasing and distribution of event tickets and merchandise in the secondary market, easier, more accessible, and cost-effective for sellers and buyers of tickets. Ticket Corp. was incorporated in Nevada on January 17, 2013. At that time Russell Rheingrover was appointed CEO, President, Secretary, CFO, Treasurer and Director. The Board voted to seek capital and begin development of our business plan. We received our initial funding of $33,000 through the sale of common stock to Russell Rheingrover who
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purchased 33,000,000 shares of our Common Stock at $0.001 per share on January 31, 2013. Kristi Ann Nelson was named to the Board of Directors and elected as current Treasurer and C.F.O. on February 1, 2013. The Company’s Registration Statement on Form S-1 was declared effective on July 25, 2014. In October 2014 the Company sold 15,000,000 shares of common stock to 50 independent shareholders at a price of $0.033 per share for total proceeds of $49,500, pursuant to the Registration Statement.
Principal products or services and their markets
The entertainment and event sales market has multiple facets. Ticket Corp. intends to participateparticipates in the secondary ticket market which includes the resale of tickets to concerts, sporting events, theatre, and other entertainment events.events as well as the live merchandise market which provides authentic merchandise related to the live performance. According to the website sportsbusinessdaily.comquora.com the secondary ticket market was a 34.5 Billion dollar market as of January 17, 2011. (http://www.sportsbusinessdaily.com/Daily/Issues/2011/01/Jan-17/Facilities/Secondary-tix.aspx).
The companyCompany intends to record when new event tickets will be on sale and utilize out software to allow usour data and industry to track and analyze ticket pricing trends in order to purchase tickets as close as possible at their lowest purchase point. We believe this will keep our overhead low by not maintaining a warehouse of tickets, or merchandise. It also means we will be able to utilize our softwaredata and algorithmsexperience to cater to each customer’s changing preferences for services, related events, and merchandise.
There is no guarantee that our business plan will succeed as we may be unable to purchase and resell event tickets per our plan.succeed. Also, there is no guarantee our potential customers will utilize our offerings of additional services, related events or merchandise.
Due to the C.E.O.sour Chief Executive Officer’s experience and relationships in the event marketing industry the companyCompany intends or has already had informal discussionscultivated partnerships and relationships with major providers in the ticketing and merchandise markets regarding purchase and resale of tickets and in conjunction with providing artist merchandise and the other capabilities of our app such as the selling event merchandise before, during or after the event through our SmartMobile Live Event Application. We have entered into agreements with Control Industry, Liquid Blue, My Locker, Tick City and Ticket Application,Network. We have entered into an agreement with Tick City to be the following groups: Live Nation, the San Francisco 49’ers, San Francisco Giants, Golden State Warriors Shoreline Amphitheatre, The Gorgeprimary mobile application for their clients which include major NCAA athletics and the San Jose Earthquakes. Live Nation is an owner of venues, a promoter of events and seller of tickets and Mr. Rheingrover has a long standing relationship with them to buy tickets from select events throughout the United States. The company intends to buy and sell tickets from the following teams, venues and primary ticket agencies: the San Francisco 49’ers, San Francisco Giants, Golden State Warriors Shoreline Amphitheatre, The Gorge and the San Jose Earthquakes. Ticketmaster and Live Nation are primary vendors of tickets. We intend to purchase tickets from both companies. As buyers of tickets, we are not their competitors. Ticketmaster has a presence in the secondary market as well as the primary market. We purchase from them through the primary market and resell through them on the secondary market. They charge Ticket Corp a 5 percent fee and the buyer a service fee based on the cost of the ticket. There is no conflict as they welcome our purchases and the fees that they collect from our sales. We do not need any agreements with these companies as we intend to act as buyers of tickets, which we will then resell. Ticket Corp will not have limitations on volume nor will we pay a higher price by not having agreements.Premier League Soccer. The price and the availability of tickets from primary resellers are determined by market demand for the artist and the event promotion.
We may post tickets we purchase on Stubhub for sale to buyers, this would broaden our audience of potential buyers. Multiple sellers post tickets for sale onapp that are being offered by other ticket services such as Stubhub and buyers go thereTicketmaster. We post these tickets to buy tickets, when buyers click on a ticket that we have posted on Stubhub they are directed to our website for the purchase. We intend to use our management’s experience and our software to time the ticket sales side of our business to maximize the highest price possible in order to maintain positive cash flow and profit. We acknowledge that because we rely on Stubhub and other online brokers there may be some impact on price or profit due to competition from other sellers. We try to mitigate this by using our forecasting technology tools and the opportunityprovide every available seat to be exposed to more potential buyers.an event. We charge a processing fee on these sales.
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Ticket Corp does not, and will not, implement automated purchasing agents. The companyCompany relies on manual purchasing based on methodology devised of tracking history and demand. The Company intends to record when new event tickets will be on sale, physically purchase initial ticket inventories and utilize our software to allow us to track and analyze ticket pricing trends in order to purchase tickets as close as possible at their lowest purchase point. We will continue to buy and sell tickets up to the time the event occurs. Purchases are made via deduction from the company’sCompany’s cash account and we manually enter the CAPTCHA (an acronym for "Completely Automated Public Turing test to tell Computers and Humans Apart") a type of challenge-response test used in computing to determine whether or not the user is human.
After the initial public funding, one of our directors, Mr. Rheingrover, provided the companyCompany with a written agreement to provide sufficient funding to cover possible daily cash shortfalls in purchasing tickets in an amount up to $50,000 for one year. As our management will control the dollar amount of daily purchases, we can cease ticket purchases whenever we have reached our shortfall limit. We believe this one year funding commitment will be sufficient as a daily cash reserve, based upon our management’s experience. However, we have conducted no formal study or research in making this shortfall limit.
We intend to implement the following steps of our business plan:
| · | The |
| · | Create contests and promotions on social media websites such as Facebook and Twitter to create ongoing customer loyalty and generate sales. |
| · | We intend to have our company representatives attend concerts, sporting, theatres and other entertainment events to promote |
| · | We have |
On December 17, 2014, the Company signed a Promissory Note in the amount of $240,000 with Russell Rheingrover. The note hashad an annual interest of 1.00%. The maturity date of the note iswas March 13, 2018. The note iswas associated with an Assignment Agreement between the Company and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreement with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er’s games with a fair market value of $80,000 per year for three years. The Company had accrued $3,800 in interest on the note as of June 30, 2016. On August 31, 2016 the Assignment Agreement was cancelled due to non-performance. All accrued interest was also cancelled, resulting in a gain of $3,800.
We are an active development stage business. In order to implement the Company’sour business plan, the company haswe have completed the following steps to date:
| 1. | Purchased our domain name WWW.Ticketcorp.com (which website is expressly not included or incorporated by reference to this filing) in January 2013. |
| 2. | Retained a web designer as of February 2013 who has designed our company logo and website, which is currently an active website. |
| 3. | Built a database extension and electronic file system that allows us to store and search customer records. We intend to use this database to analyze our customer database to make selected recommendations for upcoming events. These were completed in April 2013. |
| 4. | Completed the design of its |
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| 5. | Developed a feature for selling event merchandise through our |
| We retained a U/I (user interface) engineer to |
| 7. | We |
| 8. | We |
| We completed the user interface in |
| We are in the final pre-launch testing of the application. |
| 11. | We |
Accomplished during the Fiscal Year Ended December 31, 2017:
First Quarter Q1 2017
Completed rollout the mobile live event application Shindig.
Released the application on the Apple Store and Android Store and Google Play allowing for distribution to the broad consumer audience. This is a major milestone for the Company.
Marketing – Implemented a social media marketing program on the launch and announcement of Shindig. via Instagram.
Technology - Began Software Development of the next release of Shindig mobile app version 2.0. Continued to adapt the application to work with multiple shopping carts allowing for multiple vendors and suppliers. Continued to build reporting and uploading capabilities for partners to load merchandise to site.
Business Development - Executed key partnerships with major authorized licensed merchandise providers including Liquid Blue, Rockabilia, Get Down Art and Control Industries resulting in the Ticket Corp mobile app Shindig now having over 10,000 pieces of licensed merchandise available for sale and delivery.
Second Quarter Q2 2017
Signed on a tour/artist that will be using Shindig for purchasing and delivery.
Executed an exclusive partnership with a major live music act to provide custom ticket and merchandise packages in conjunction with the artists.
Third Quarter Q3 2017
Attended first live event with Ticket Corp live event partner the Damian Marley tour with successful merchandise sales from the Shindig app with both at home delivery and at event pick up of purchased merchandise.
Developed the live event community through news, blogs giveaways and promotion with targeted advertising.
Shindig app development accomplishments
Updated and enhanced admin functionality
| - | Simplified Category assignment and |
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| - | API2Cart implementation for vendor inventory management |
| - | Enhanced reporting functionality |
| - | Designed new geolocation functionality |
| - | shows events |
| - | to roll out Q4 2017. |
Fourth Quarter Q4 2017
Began Beta testing of version 2.0
Continued to execute on our pilot program focused on our ability to deliver merchandise purchased at an event with delivery to home or pick up in event with additional tour dates for Damian Marley.
Continued to deliver the Shindig application to the U.S. market with an partnership with performing artist Cypress Hill for Q4 2017 event dates
Plan of Operation
Proposed Objectives 2018
Assemble partners to be able to offer full line of support for merchandising from artwork to in event distribution for smaller/up and coming acts/teams
Finalize testing of Shindig 2.0 for added functionality for Q1 2018 release.
Attend events to sign additional partnerships with major authorized licensed merchandise providers
Develop partners for app distribution.
No assurances can be provided that we will achieve our objectives for this year.
As we become successful in implementing this operational portion of the business plan and we continue to produce sales from the app or website, we intend to hire additional staff to handle increased demands, site monitoring, data entry, and customer support. There may be additional demands placed on the company for website development and a consequent need to broaden the management team. Depending on availability of funds and the opportunities available to us, we may hire marketing personnel to access additional sales and distribution channels.
There is no guarantee that we will be able to obtain a substantial market share in this industry.
Distribution methods of the products or services
We intend to sell tickets and merchandise online to concerts, sporting events, theatre, and other entertainment events directly to our customers using their smart phones and tablets such as Android and Apple enabled devices. When our customers arrive at an event venue, the unique barcode on their smart phones and tablets will be verified with the existing scanners already in use at the event venues. Ticket Corp will be using universal barcodes that work with any scanning device. Venues that have ticket scanning capability accept barcodes on Smart Phones. There does not need to be an agreement with any venue that use the universal barcodes. There are still some older and smaller venues that do not utilize universal barcodes or use scanning devices and still tear tickets. ManagementIn those cases, and in cases where hard tickets are needed to enter an event we make arrangements to mail a hard ticket or make that ticket available at will work with each venue to confirm the type of scanners they use to avoid any problems at the event.call. Our software applications are designed to reduceorder processing through Ticket Network significantly reduces the risk of lost tickets and ticket fraud. We also intend to sell eventdeliver related merchandise on line to our customers which will be shipped directly to the customers by the vendors.vendors, by us or picked up at the event.
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If we are successful in our business plans and attract customers they may use our website or use our smartphone application to choose the venue, event time and date and purchase their tickets through PayPal or their credit card. The tickets will be delivered to our customers’ smart phonescard, Apple Pay and tablets with a unique bar code capable of being scanned at the event venue. The benefits of our on line distribution method:
We intend to use our management’s experience and our software to time the ticket sales side of our business to maximize the highest price possible in order to maintain positive cash flow and profit. Our pricing will be based upon market demand. Each event has a limited amount of available tickets and as the event date approaches, the price will normally fluctuate with the supply and demand for tickets offered for sale. Other variables that can affect this are weather, team performance, the last minute absence of a key player or performer, the last minute addition of additional shows by the promoter or performer.
Status of any publicly announced new product or service
We currently have no new product or service publicly announced.
Overview of the Online Ticketing Industry
Management believes, based on our experience as frequent attendees of events, that ticketing is an industry that has experienced very little innovation over many years, but is now evolving into a business that increasingly emphasizes improving the experience for the two most important parties involved in ticketing for any entertainment and sporting event – patrons and the providers of the entertainment. Though the technology for delivering tickets via smartphones is already in use within the industry, in our opinion it is not widely or effectively used, in our opinion.
Competition, competitive position in the industry and methods of competition
The ticketing industry is highly competitive. We will face significant competition from established national, regional and local primary ticketing service providers as well as self-ticketing systems through facility box offices and season, subscription or group sales. We will also face competition in the resale of tickets from online auction websites and resale marketplaces and from other ticket resellers with online distribution capabilities. There can be no assurance that if we are able to establish our business that will be able to compete successfully in the future with existing or potential competitors or that competition will not have an adverse effect on our business and financial condition.
There are a number of competitors in this area including but not limited to Ace Tickets, Go Tickets and Tickets now. Management has identified the following providers of this service:
Sources and availability of raw materials and the names of principal suppliers
We intend to purchase our tickets from arenas, amphitheaters, theaters, performance halls, golf tournaments, festivals and fairs, rodeos, sports teams. We intend to purchase most of our tickets from the primary ticket market which is defined as the original seller of the ticket.
Dependence on one or a few major customers
Due to the large number of individual ticket purchasers we will not be dependent upon one or few major customers if we are able to carry out our business plan.
Patents, trademarks, licenses, franchises, concessions, royalty agreements or labor contracts
The Company presently has no patents or trademarks, licenses, franchises, concessions, royalty agreements or labor contracts. We plan to seek intellectual property protection for our app technology.
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Need for any government approval of principal products or services
The Company will be subject to numerous state and local licensing laws and laws that require the disclosure of specified information to ticket purchasers.
Bankruptcy or Similar Proceedings
There has been no bankruptcy, receivership or similar proceeding.
Reorganization, Purchase or Sale of Assets
There have been no material reclassifications, mergers, consolidations, or purchase or sale of a significant amount of assets not in the ordinary course of business.
Effect of existing or probable governmental regulations on the business
The Company will be subject to numerous state and local licensing laws and laws that require the disclosure of specified information to ticket purchasers.
In San Francisco and California there are no special licensing requirements to be an on-line ticket reseller. We are not subject to anti-scalping laws as these laws in both San Francisco and the State of California apply to physically selling tickets on or near the venue premises.
In addition, increasing concern over consumer privacy has led to the introduction from time to time of proposed legislation which could impact the direct marketing and market research industries. The Company does not know when or whether any such proposed legislation may pass or whether any such legislation would relate to the types of services currently provided by the Company or which the Company intends to develop. Accordingly, the Company cannot predict the effect, if any, that any such future regulation may have on its business.
Research and development activities during the last two years
We have not expended funds for research and development costs since inception.
Costs and effects of compliance with environmental laws
We do not anticipate any costs or effects of compliance with environmental laws.
Number of total employees and number of full time employees
We currently have two full time employees, ourand a number of contracted personnel including in the areas of business and technology development. Our officers, Russell Rheingrover and Kristi Ann Nelson. BothNelson plan to devote as much time to our business as is necessary and currently are responsible for our general strategy, fund raising and customer relations.relations and product development. Mr. Rheingrover estimates he is currently devoting approximately 5 hours per week to companyCompany matters and Ms. Nelson estimates she is spending approximately 2 hours on companyCompany matters per week. Once sales support the expense we may hire additional staff.
Mr. Rheingrover, who currently owns 69% of our outstanding voting stock, is also the Chief Executive Officer of Jiffy Tickets, a national reseller of concert, theater, sporting and event tickets. He currently devotes approximately 5 hours of his business time to our affairs and the balance to Jiffy Tickets. He owes a fiduciary duty of loyalty to us, but also owes similar fiduciary duties to Jiffy Tickets. Due to his responsibilities to serve both companies, there is potential for conflicts of interest. He will use every effort to avoid material conflicts of interest generated by his responsibilities to both companies, but no assurance can be given that material conflicts will not arise which could be detrimental to our operations and financial prospects.
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Item 1A. Risk Factors
WE ARE A DEVELOPMENT STAGE COMPANY AND HAVE A LIMITED OPERATING HISTORY. AN INVESTMENT IN THE SHARES OFFERED HEREIN IS HIGHLY RISKY AND COULD RESULT IN A COMPLETE LOSS OF YOUR INVESTMENT IF WE ARE UNSUCCESSFUL IN OUR BUSINESS PLAN.
Ticket Corp was incorporated on January 17, 2013 and we have only recently commenced our business operations. Until we are actually in the marketplace for a demonstrable period of time, it is impossible to determine if our business strategy will be viable or successful. Any such failure could result in the possible closure of our business or force us to seek additional capital through loans or additional sales of our equity securities to continue business operations, which would dilute the value of current shares.
OUR AUDITORS HAVE ISSUED A GOING CONCERN OPINION, THEREFORE THERE IS SUBSTANTIAL UNCERTAINTY WE WILL CONTINUE ACTIVITIES IN WHICH CASE YOU COULD LOSE YOUR INVESTMENT.
Our auditors haveindependent registered public accounting firm issued its report in connection with the audit of our financial statements as of December 31, 2017, which included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern. In addition, our note to our financial statements for the year ended December 31, 2017 included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern. If we are not able to continue as a going concern, opinion. This meansit is likely that there is substantial doubtholders of our common stock will lose all of their investment. Our financial statements do not include any adjustments that we can continue as an ongoing business formight result from the next twelve months. As such we may have to cease activities and you could lose your investment.outcome of this uncertainty.
WE ARE AN “EMERGING GROWTH COMPANY” AND WE CANNOT BE CERTAIN IF THE REDUCED DISCLOSURE REQUIREMENTS APPLICABLE TO EMERGING GROWTH COMPANIES WILL MAKE OUR COMMON STOCK LESS ATTRACTIVE TO INVESTORS.
We are an “emerging growth company,” as defined in the Jumpstart our Business Startups Act of 2012, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We cannot predict if investors will find our common stock less attractive because we will rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.
Under the Jumpstart Our Business Startups Act, “emerging growth companies” can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to avail ourselves to this exemption from new or revised accounting standards and, therefore, we will not be subject to the same new or revised accounting standards as other public companies that are not “emerging growth companies.”
As a result of our election to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2), our financial statements may not be comparable to companies that comply with public company effective dates.
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OUR LIMITED OPERATING HISTORY MAKES IT DIFFICULT TO EVALUATE OUR FUTURE PROSPECTS AND RESULTS OF OPERATION.
We were incorporated on January 17, 2013 have a limited operating history. Accordingly, you should consider our future prospects in light of the risks and uncertainties experienced by development stage companies in evolving industries. Some of these risks and uncertainties relate to our ability to:
| 1. | Establish and maintain our market position; |
| 2. | Respond to competitive market conditions; |
| 3. | Increase awareness of our brand; |
| 4. | Respond to changes in our regulatory environment; |
| 5. | Maintain effective control of our costs and expenses; |
| 6. | Raise sufficient capital to sustain and expand our business; and |
| 7. | Attract, retain and motivate qualified personnel. |
If we are unsuccessful in addressing any of these risks and uncertainties, our business may be materially and adversely affected.
OUR BUSINESS WILL BE DEPENDENT ON OUR ABILITY TO PURCHASE TICKETS FROM PROMOTERS AND VENUES TO BE ABLE TO RESELL TICKETS TO CONSUMERS. IF WE ARE UNABLE TO PURCHASE TICKETS OUR BUSINESS WILL BE ADVERSELY AFFECTED.
If we are unable to purchase tickets from promoters or venues, we may not be able to execute our business plan. Our director has agreed to provide shortfall funding of up to $50,000 for ticket purchases however we may face inventory shortages if we are unable to retain enough cash to purchase the tickets for resale. If we are unable to purchase for resale from primary sellers enough inventory of tickets, or there is not enough inventory for us to acquire in the primary or secondary markets, our business, financial condition and/or results of operations could be materially and adversely affected.
Another important component of our success will be the ability to establish and maintain relationships with service providers, including providers of credit card processing, internet services, as well as advertisers, among other parties. Any inability to establish these relationships or adverse changes in these relationships, including the inability of these parties to fulfill their obligations to us for any reason, could adversely affect our business.
OUR SUCCESS DEPENDS, IN SIGNIFICANT PART, ON ENTERTAINMENT, SPORTING AND LEISURE EVENTS AND ANY FACTORS THAT MAY HAVE AN ADVERSE AFFECT ON SUCH EVENTS COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Our business plan is to sell tickets to live entertainment and leisure events at arenas, stadiums, theaters and other facilities. Accordingly, our business, financial condition and results of operations will be directly affected by the popularity, frequency and location of such events. Ticket sales are sensitive to fluctuations in the number and pricing of entertainment and leisure events and activities offered by promoters, facilities, and adverse trends in the entertainment and leisure event industries could adversely affect our business. In addition, general economic conditions, consumer trends, work stoppages, natural disasters and terrorism could have a material adverse effect on our business. Entertainment-related expenditures are particularly sensitive to business and personal discretionary spending levels, which tend to decline during general economic downturns. A protracted global recession could have a significant negative impact on our business, financial condition and results of operations could be negatively impacted.
THE TICKETING INDUSTRY IS HIGHLY COMPETITIVE AND COMPETITORS MAY NOT BE ABLE TO WIN BUSINESS AWAY FROM COMPETITORS, WHICH COULD ADVERSELY AFFECT THE COMPANY'S FINANCIAL PERFORMANCE.
The ticketing industry is highly competitive. We will face significant competition from established national, regional and local primary ticketing service providers as well as self-ticketing systems through facility box offices and season, subscription or group sales. We will also face competition in the resale of tickets from online auction websites and resale marketplaces and from other ticket resellers with online distribution capabilities. There can be no assurance that if we are able to establish our business that will be able to compete successfully in the future with existing or potential competitors or that competition will not have an adverse effect on its business and financial condition.
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OUR BUSINESS MAY SUFFER IF IT IS ALLEGED OR DETERMINED THAT THE TECHNOLOGY WE DEVELOP INFRINGES UPON THE INTELLECTUAL PROPERTY RIGHTS OF OTHERS.
The technology industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets and other intellectual and proprietary rights. Companies in the technology industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. Many of our competitors and other industry participants have been issued patents and/or have filed patent applications and may assert patent or other intellectual property rights within the industry. Our future technologies may not be able to withstand any third-party claims or rights against their use. Claims of intellectual property infringement might require us to redesign our application, delay releases, enter into costly settlement or license agreements or pay costly damage awards, or face a temporary or permanent injunction prohibiting us from marketing or selling our ticket services. The occurrence of any of these events may have a material adverse effect on our business.
THERE ARE NO SUBSTANTIAL BARRIERS TO ENTRY INTO THE INDUSTRY AND BECAUSE WE DO NOT CURRENTLY HAVE ANY INTELLECTUAL PROPERTY PROTECTION FOR OUR TECHNOLOGY OR SERVICES, THERE IS NO GUARANTEE SOMEONE ELSE WILL NOT DUPLICATE OUR IDEAS, WHICH COULD SEVERELY LIMIT OUR SALES AND REVENUES.
Since we have no copyright protection, unauthorized persons may attempt to copy aspects of our business, including our web site design or functionality, products or marketing materials. We have no plans to seek intellectual property protection at this time. Any encroachment upon our corporate information, including the unauthorized use of our brand name or the use of a similar name by a competing company, may affect our ability to create brand name recognition, cause customer confusion and/or have a detrimental effect on our business. Litigation or proceedings before the U.S. or International Patent and Trademark Offices may be necessary in the future to enforce our intellectual property rights, to protect our trade secrets and domain name. Any such infringement, litigation or adverse proceeding could result in substantial costs and diversion of resources and could seriously harm our business operations and/or results of operations.
WE MAY NOT BE ABLE TO ADAPT OUR BUSINESS QUICKLY ENOUGH TO CHANGING CUSTOMER REQUIREMENTS AND INDUSTRY STANDARDS.
The e-commerce industry is characterized by evolving industry standards, frequent new service and product introductions and enhancements and changing customer demands. We may not be able to adapt quickly enough and/or in a cost-effective manner to changes in industry standards and customer requirements and preferences, and any failure to do so could adversely affect our business. In addition, the continued widespread adoption of new Internet or telecommunications technologies and devices or other technological changes could require us to modify or adapt our respective services or infrastructures. We may be unable to devote financial resources to new technologies and systems in the future. Any failure on our part to modify or adapt those respective services or infrastructures in response to these trends could render our website and services obsolete, which could adversely affect our business.
IF THERE ARE EVENTS OR CIRCUMSTANCES AFFECTING THE RELIABILITY AND SECURITY OF THE INTERNET, ACCESS TO OUR WEBSITE AND/OR THE ABILITY TO SAFEGUARD CONFIDENTIAL INFORMATION COULD BE IMPAIRED CAUSING A NEGATIVE EFFECT ON THE FINANCIAL RESULTS OF OUR BUSINESS OPERATIONS.
Despite the implementation of security measures, once our website it up and running, our website infrastructure may be vulnerable to computer viruses, hacking or similar disruptive problems caused by members, other Internet users, other connected Internet sites, and the interconnecting telecommunications networks. Such problems caused by third-parties could lead to interruptions, delays or cessation of service to our customers. Inappropriate use of the Internet by third-parties could also potentially jeopardize the security of confidential information stored in our computer system, which may deter individuals from becoming customers. Such inappropriate use of the Internet includes attempting to gain unauthorized access to information or systems, which is commonly known as “cracking” or “hacking.” Although we intend to implement security measures, such measures have been circumvented in the past by hackers on other websites on the internet, and there can be no assurance that any measures we implement would not be circumvented in future. Dealing with problems caused by computer viruses or other inappropriate uses or security breaches may require interruptions, delays or cessation of service to our customers, which could have a material adverse effect on our business, financial condition and results of operations.
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ANY FAILURE TO COMPLY WITH EXISTING LAWS, RULES AND REGULATIONS AS WELL AS CHANGING LAWS, RULES AND REGULATIONS AND OTHER LEGAL UNCERTAINTIES, COULD ADVERSELY AFFECT OUR BUSINESS.
Our business is to sell tickets and provide related services to consumers online. We are subject to a wide variety of statutes, rules, regulations, policies and procedures in various jurisdictions in the United States, which are subject to change at any time. For example, those laws, rules and regulations applicable to providers of primary ticketing and ticket resale services, which in some cases regulate the amount of transaction and other fees that they may be charged in connection with primary ticketing sales and/or the ticket prices that may be charged in the case of ticket resale services. New legislation of this nature is introduced from time to time in various jurisdictions in which we may sell tickets and provide services. Our failure to comply with these laws and regulations could result in fines and/or proceedings against us by governmental agencies and/or consumers, which if material, could adversely affect our business and results of operations. In addition, the promulgation of new laws, rules and regulations that restrict or otherwise unfavorably impact the ability or manner in which we may provide ticket services may require us to change certain aspects of our business to ensure compliance, which could decrease demand for services, reduce revenues, increase costs and/or subject us to additional liabilities.
WE MAY NEED TO OBTAIN ADDITIONAL FINANCING IF WE FAIL TO GENERATE REVENUE IN THE ANTICIPATED TIMEFRAME. IF WE DO NOT OBTAIN SUCH FINANCING, WE MAY HAVE TO REDUCE OR CEASE OUR ACTIVITIES AND INVESTORS COULD LOSE THEIR ENTIRE INVESTMENT.
IF WE OBTAIN DEBT FINANCING, WE WILL FACE RISKS ASSOCIATED WITH FINANCING OUR OPERATIONS.
If we obtain debt financing, we will be subject to the normal risks associated with debt financing, including the risk that our cash flow will be insufficient to meet required payments of principal and interest, and the risk that we will not be able to renew, repay, or refinance our debt when it matures or that the terms of any renewal or refinancing will not be as favorable as the existing terms of that debt. If we enter into secured lending facilities and are unable to pay our obligations to our secured lenders, they could proceed against any or all of the collateral securing our indebtedness to them.
OUR SUCCESS IS DEPENDENT ON A LIMITED NUMBER OF KEY EXECUTIVES.
The success of our business strategy and our ability to operate profitably depends on the continued employment of our management team. The loss of the services of one or more of these key executives could have a material adverse effect on our business, financial condition and/or results of operations. There can be no assurance that we will be able to retain our existing management, attract additional qualified executives or adequately fill new management positions or vacancies created by expansion or turnover. We do not have employment agreements with members of our management team and we do not maintain key-person life insurance policies on their lives. The loss of any of our management or key personnel could seriously harm our business.
OUR CHIEF EXECUTIVE OFFICER DOES NOT HAVE EXPERIENCE WITH MANAGING A PUBLIC COMPANY.
Our Chief Executive Officer has no direct training or experience in managing and fulfilling the regulatory reporting obligations of a public company. While his business experience includes management and marketing, particularly in the ticket industry, he does not have experience as an officer or director in a public company setting. In the event he is unable to fulfill any aspect of his duties to the Company we may experience a shortfall or complete lack of sales resulting in little or no profits and eventual closure of our business.
HAVING ONLY TWO DIRECTORS LIMITS OUR ABILITY TO ESTABLISH EFFECTIVE INDEPENDENT CORPORATE GOVERNANCE PROCEDURES AND INCREASES THE CONTROL OF OUR PRESIDENT OVER OPERATIONS AND BUSINESS DECISIONS INCLUDING SALARIES AND PERQUISITES.
We have only two directors, who are our principal executive officers. Accordingly, we cannot establish board committees comprised of independent members to oversee functions like compensation or audit issues. In addition, a tie vote of board members is decided in favor of the chairman, which gives him significant control over all corporate issues, including all major decisions on operations and corporate matters such as approving salary and perquisites. The directors will also determine their own salaries and perquisites and as a result there could be no funds for net income. Until we have a larger board of directors that would include some independent members, if ever, there will be limited oversight of our president’s decisions and activities and little ability for minority shareholders to challenge or reverse those activities and decisions, even if they are not in the best interests of minority shareholders.
RUSSELL RHEINGROVER, OUR SENIOR EXECUTIVE OFFICER IS ALSO THE SENIOR EXECUTIVE OFFICER OF JIFFY TICKETS WHICH COULD CREATE A POTENTIAL FOR CONFLICTS OF INTEREST.
Mr. Rheingrover who currently owns 69% of our outstanding voting stock is also the Chief Executive Officer of Jiffy Tickets, a national reseller of concert, theater, sporting and event tickets. He currently devotes approximately 5 hours of his business time to our affairs and the balance to Jiffy Tickets. He owes a fiduciary duty of loyalty to us, but also owes similar fiduciary duties to Jiffy Tickets. Due to his responsibilities to serve both companies, there is potential for conflicts of interest. He will use every effort to avoid material conflicts of interest generated by his responsibilities to both companies, but no assurance can be given that material conflicts will not arise which could be detrimental to our operations and financial prospects.
OUR COMMON STOCK MAY BE CONSIDERED A “PENNY STOCK,” AND THEREBY BE SUBJECT TO ADDITIONAL SALE AND TRADING REGULATIONS THAT MAY MAKE IT MORE DIFFICULT TO SELL.
Our common stock is considered to be a “penny stock.” It does not qualify for one of the exemptions from the definition of “penny stock” under Section 3a51-1 of the Exchange Act. Our common stock is a “penny stock” because it meets one or more of the following conditions (i) the stock trades at a price less than $5.00 per share; (ii) it is not traded on a “recognized” national exchange or (iii) it is not quoted on the NASDAQ Global Market, or has a price less than $5.00 per share. The principal result or effect of being designated a “penny stock” is that securities broker-dealers participating in sales of our common stock are subject to the “penny stock” regulations set forth in Rules 15-2 through 15g-9 promulgated under the Securities Exchange Act. For example, Rule 15g-2 requires broker-dealers dealing in penny stocks to provide potential investors with a document disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document at least two business days before effecting any transaction in a penny stock for the investor’s account. Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before selling any penny stock to that investor. This procedure requires the broker-dealer to (i) obtain from the investor information concerning his or her financial situation, investment experience and investment
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objectives; (ii) reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of penny stock transactions; (iii) provide the investor with a written statement setting forth the basis on which the broker-dealer made the determination in (ii) above; and (iv) receive a signed and dated copy of such statement from the investor, confirming that it accurately reflects the investor’s financial situation, investment experience and investment objectives. Compliance with these requirements may make it more difficult and time consuming for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise.
THERE IS NO PUBLIC MARKET FOR OUR SECURITIES AND AN ACTIVE TRADING MARKET MAY NOT DEVELOP.
We cannot predict the extent to which investor interest will lead to the development of an active trading market on the OTC Bulletin Board or otherwise or how liquid that market might become. An active public market for our Common Stock may not develop or be sustained after the offering. If an active public market does not develop or is not sustained, it may be difficult for our current shareholders to sell their shares of Common Stock at a price that is attractive to them, or at all.
RULE 144 SALES IN THE FUTURE MAY HAVE A DEPRESSIVE EFFECT ON THE COMPANY’S STOCK PRICE AS AN INCREASE IN SUPPLY OF SHARES FOR SALE, WITH NO CORRESPONDING INCREASE IN DEMAND WILL CAUSE PRICES TO FALL.
All of the outstanding shares of common stock held by the present officers, directors, and affiliate stockholders are “restricted securities” within the meaning of Rule 144 under the Securities Act of 1933, as amended. As restricted shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Securities Act of 1933 and as required under applicable state securities laws. Rule 144 provides in essence that a person who is an affiliate or officer or director who has held restricted securities for six months may, under certain conditions, sell every three months, in brokerage transactions, a number of shares that does not exceed the greater of 1.0% of a Company’s issued and outstanding common stock. There is no limit on the amount of restricted securities that may be sold by a non-affiliate after the owner has held the restricted securities for a period of six months if the Company is a current reporting company under the Securities Exchange Act of 1934. A sale under Rule 144 or under any other exemption from the Securities Act of 1933, if available, or pursuant to subsequent registration of shares of common stock of present stockholders, may have a depressive effect upon the price of the common stock in any market that may develop. In addition, if we are deemed a shell company pursuant to Section 12(b)-2 of the Act, our “restricted securities”, whether held by affiliates or non-affiliates, may not be re-sold for a period of 12 months following the filing of a Form 10 level disclosure or registration pursuant to the Securities Act of 1933.
FAILURE TO ACHIEVE AND MAINTAIN EFFECTIVE INTERNAL CONTROLS IN ACCORDANCE WITH SECTION 404 OF THE SARBANES-OXLEY ACT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS AND OPERATING RESULTS.
It is time consuming, difficult and costly for us to develop and maintain the internal controls, processes and reporting procedures required by the Sarbanes-Oxley Act, and as our business develops, we may need to hire additional financial reporting, internal auditing and other finance staff in order to remain compliant. The cost of compliance will adversely affect our financial results, while, if we are unable to comply, we may not be able to obtain the independent accountant certifications that the Sarbanes-Oxley Act requires of publicly traded companies.
If we fail to comply in a timely manner with the requirements of Section 404 of the Sarbanes-Oxley Act regarding internal control over financial reporting or to remedy any material weaknesses in our internal controls that we may identify, such failure could result in material misstatements in our financial statements, cause investors to lose confidence in our reported financial information and have a negative effect on the trading price of our common stock.
Pursuant to Section 404 of the Sarbanes-Oxley Act and current SEC regulations, we are required to prepare assessments regarding internal controls over financial reporting and furnish a report by our management on our internal control over financial reporting. Failure to achieve and maintain an effective internal control environment or complete our Section 404 certifications could have a material adverse effect on our stock price.
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In addition, in connection with our on-going assessment of the effectiveness of our internal control over financial reporting, we may discover “material weaknesses” in our internal controls as defined in standards established by the Public Company Accounting Oversight Board, or the PCAOB. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The PCAOB defines “significant deficiency” as a deficiency that results in more than a remote likelihood that a misstatement of the financial statements that is more than inconsequential will not be prevented or detected.
In the event that a material weakness is identified, upon receiving sufficient financing or generating sufficient revenues, we will employ qualified personnel and adopt and implement policies and procedures to address any such material weaknesses. However, the process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. We cannot assure you that the measures we will take will remediate any material weaknesses that we may identify or that we will implement and maintain adequate controls over our financial process and reporting in the future.
Any failure to complete our assessment of our internal control over financial reporting, to remediate any material weaknesses that we may identify or to implement new or improved controls, or difficulties encountered in their implementation, could harm our operating results, cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements. Any such failure could also adversely affect the results of the periodic management evaluations of our internal controls and, in the case of a failure to remediate any material weaknesses that we may identify, would adversely affect the annual auditor attestation reports regarding the effectiveness of our internal control over financial reporting that are required under Section 404 of the Sarbanes-Oxley Act. Inadequate internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.
The systems of internal controls and procedures that we have developed and implemented to date are adequate in a research and development business. The current transaction volume and limited transaction channels mean that operating management, financial management, board members and auditor can, and do, efficiently perform a very extensive and detailed transaction review to ensure compliance with the Company’s established procedures and controls. If our business grows rapidly, we may not be able to keep up with recruiting and training personnel, and enhancing our systems of internal control in line with the growth in transaction volumes and compliance risks which could result in loss of assets, profit, and ability to manage the daily operations of our Company.
PUBLIC DISCLOSURE REQUIREMENTS AND COMPLIANCE WITH CHANGING REGULATION OF CORPORATE GOVERNANCE POSE CHALLENGES FOR OUR MANAGEMENT TEAM AND RESULT IN ADDITIONAL EXPENSES AND COSTS WHICH MAY REDUCE THE FOCUS OF MANAGEMENT AND THE PROFITABILITY OF OUR COMPANY.
Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations promulgated thereunder, the Sarbanes-Oxley Act and SEC regulations, have created uncertainty for public companies and significantly increased the costs and risks associated with accessing the U.S. public markets. Our management team will need to devote significant time and financial resources to comply with both existing and evolving standards for public companies, which will lead to increased general and administrative expenses and a diversion of management time and attention from revenue generating activities to compliance activities.
SHOULD ONE OR MORE OF THE FOREGOING RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD THE UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, EXPECTED, INTENDED OR PLANNED.
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Item 1B. Unresolved Staff Comments
This Item is not applicable to us as we are not an accelerated filer, a large accelerated filer, or a well-seasoned issuer.
Item 2. Properties
We do not currently own any property. The mailing address of our executive offices is 1135 Terminal Way, Suite 209, Reno, NV 89502. We currently operate out of the office of our President, Russell Rheingrover at no charge and consider our current space arrangement adequate and will reassess our needs based upon the future growth of the Company.
Item 3. Legal Proceedings
We are not currently involved in any legal proceedings nor do we have any knowledge of any threatened litigation.
Item 4. Mine Safety Disclosures
None.
Part II
Item 5. Market for Common Equity and Related Stockholder Matters
No Public Market for Common Stock
There is presently no public market for our common stock. We anticipate makingThrough a market maker we have initiated an application for trading of our common stock on the over the counter bulletin board within the next 30 days.board. We can provide no assurance that our shares will be traded on the bulletin board, or if traded, that a public market will materialize.
The Securities Exchange Commission has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally 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 such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the Commission, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of Securities' laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price;(d) contains a toll-free telephone number for inquiries on disciplinary actions;(e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and;(f) contains such other information and is in such form, including language, type, size and format, as the Commission shall require by rule or regulation.
The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with; (a) bid and offer quotations for the penny stock;(b) the compensation of the broker-dealer and its salesperson in the transaction;(c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market value of each penny stock held in the customer's account.
In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.
These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock if it becomes subject to these penny stock rules. Therefore, because our common stock is subject to the penny stock rules, stockholders may have difficulty selling those securities.
Holders of Our Common Stock
On January 31, 2013, the Company issued a total of 33,000,000 shares of common stock to its sole officer Russell RhiengroverRheingrover for cash in the amount of $0.001 per share for a total of $33,000.
The company’sCompany’s Registration Statement on Form S-1 was declared effective on July 25, 2014. In October 2014 the companyCompany sold 15,000,000 shares of common stock to 50 independent shareholders at a price of $0.033 per share for total proceeds of $49,500, pursuant to the Registration Statement.
As of December 31, 20142017, the Company had 48,000,000 shares of common stock issued and outstanding, held by fifty one (51) shareholders of record.
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Rule 144 Shares
None of our common stock is currently available for resale to the public under Rule 144. In general, under Rule 144 as currently in effect for over the-counter-stocks, including those quoted on the OTC Bulletin Board and the OTC Markets Pink Sheets, an affiliate of the companyCompany who has beneficially owned shares of a company'sCompany’s common stock for at least one year is entitled to sell within any three month period a number of shares that does not exceed one percent of the number of shares of the company’sCompany’s common stock then outstanding.
Sales under Rule 144 are also subject to manner of sale provisions and notice requirements and to the availability of current public information about the company.Company.
Under Rule 144(k), a person who is not one of the company'sCompany’s affiliates at any time during the three months preceding a sale, and who has beneficially owned the shares proposed to be sold for at least one year, is entitled to sell shares without complying with the manner of sale, public information, volume limitation or notice provisions of Rule 144.
Stock Option Grants
None.
Dividends
There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where after giving effect to the distribution of the dividend:
| 1. | we would not be able to pay our debts as they become due in the usual course of business, or; |
| 2. | our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution. |
We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.
Item 6. Selected Financial Data
Not required under Regulation S-K for “smaller reporting companies.”
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with our financial statements and the related notes thereto and other financial information contained elsewhere in this Form 10-K
The Company’s MD&A is comprised of significant accounting estimates made in the normal course of its operations, overview of the Company’s business conditions, results of operations, liquidity and capital resources and contractual obligations. The Company did not have any off balance sheet arrangements as of December 31, 2017 or out predictions.2016.
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The discussion and analysis of the Company’s financial condition and results of operations is based upon its financial statements, which have been prepared in accordance with generally accepted accounting principles generally accepted in the United States (or “GAAP”). The preparation of those financial statements requires us to make estimates and judgments that affect the reported amount of assets and liabilities at the date of its financial statements. Actual results may differ from these estimates under different assumptions or conditions.
Our Ability To Continue as a Going Concern
Our independent registered public accounting firm has issued its report in connection with the audit of our financial statements as of December 31, 2017 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern. Our financial statements as of December 31, 2017 have been prepared under the assumption that we will continue as a going concern. If we are not able to continue as a going concern, it is likely that holders of our common stock will lose all of their investment. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Results of Operations for the period from inception (January 17, 2013) toyears ended December 31, 20142017 and December 31, 2016
We have generated $113,500$12,208 and $89,463 in revenues since our inception on January 17, 2013.for the years ended December 31, 2017 and 2016, respectively. Our cost of goods sold was $59,965$10,204 and $62,144, resulting in a gross profit of $53,535. During$2,004 and $27,319, respectively. The difference in revenue was based upon market sales and the period from inceptionamount of tickets and price we were able to December 31, 2014, our operating expenses were comprisedsell them for. The difference in the cost of generalgoods sold was due to prevailing ticket prices for purchase and administrative expenses of $105,256.
the market price at which the tickets could be resold. We incurred operating expenses of $66,199$117,269 and $39,056$126,436 for the years ended December 31, 20142017 and 2013,2016, respectively. These expenses consisted of general operating expenses, including professional fees and research and development costs, incurred in connection with the day to day operation of our business and the preparation and filing of our periodic reports. For the year ended December 31, 2016 we recorded a gain of $3,800 from the cancellation of debt associated with Ticket Assignment Agreement. For the years ended December 31, 2017 and 2016 we recorded $17,063 and $12,470 in interest expense. The increase in interest was due to the additional convertible notes from cash loaned to our company by the director.
As of December 31, 2014, there2017, $218,433 is a total of $100 in a note payable that is owed by the company to Russell Rheingrover, an officer and director, for expenses that he has paid on behalfour Chief Executive Officer. $100 of the company. funds were loaned by him to by our company to open the bank account and is non-interest bearing with no specific repayment terms. The accrued interest payable of the Convertible Notes as outlined below was $28,333.
$35,000 of the funds are the result of a 10% Convertible Note issued on September 3, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 3, 2016 or is convertible at the conversion price of $0.05 per common stock share. On September 8, 2017, the terms of the Note were extended to September 7, 2018. The conversion price was considered by management to be a fair price.
$25,000 of the funds are the result of a 10% Convertible Note issued on October 5, 2015. Under the terms of the note the principal sum and interest freeis to be repaid to Mr. Rheingrover by October 5, 2016 or is convertible at the conversion price of $0.05 per common stock share. On October 5, 2017 the terms of the Note were extended to October 4, 2018. The conversion price was considered by management to be a fair price.
$35,000 of the funds are the result of a 10% Convertible Note issued on April 30, 2016. Under the terms of the note the principal sum and payableinterest is to be repaid to Mr. Rheingrover by April 30, 2017 or is convertible at the conversion price of $0.10 per common stock share. On April 30, 2017, the terms of the Note were extended to April 30, 2018. The conversion price was considered by management to be a fair price.
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$20,000 of the funds are the result of a 10% Convertible Note issued on demand.September 8, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 8, 2017 or is convertible at the conversion price of $0.15 per common stock share. On September 8, 2017, the terms of the Note were extended to September 7, 2018. The conversion price was considered by management to be a fair price.
$30,000 of the funds are the result of a 10% Convertible Note issued on October 26, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 26, 2017 or is convertible at the conversion price of $0.15 per common stock share. On October 26, 2017, the terms of the Note were extended to October 26, 2018. The conversion price was considered by management to be a fair price.
$30,000 of the funds are the result of a 10% Convertible Note issued on January 6, 2017. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by January 6, 2018 or is convertible at the conversion price of $0.15 per common stock share. The conversion price was considered by management to be a fair price.
$10,000 of the funds are the result of a 10% Convertible Note issued on July 3, 2017. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by July 2, 2018 or is convertible at the conversion price of $0.15 per common stock share. The conversion price was considered by management to be a fair price.
$5,000 of the funds are the result of a 10% Convertible Note issued on October 3, 2017. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 2, 2018 or is convertible at the conversion price of $0.15 per common stock share. The conversion price was considered by management to be a fair price.
As of December 31, 2014 the2017, our company had $11,000 in Accounts Receivable, $10,498$76,645 in Accounts Payable and $200$28,333 in accrued interest expense.
We received the initial equity funding of $33,000 from our sole officer, Russell Rheingrover, who purchased 33,000,000 shares of our common stock at $0.001 per share.
The following table provides selected financial data about our Companycompany for the period from the date of incorporation through December 31, 2014.2017. For detailed financial information, see the financial statements included in this report.
| Balance Sheet Data: | 12/31/2014 | 12/31/2017 | ||||||
| Cash | $ | 30,577 | $ | 3,824 | ||||
| Total assets | $ | 281,577 | $ | 3,824 | ||||
| Total liabilities | $ | 250,798 | $ | 295,078 | ||||
| Stockholder’s equity | $ | 30,779 | $ | (291,253 | ) | |||
We are actively working to advancecontinue the advancement of our business plan.
We are an active development stage business. In order to implement our business plan, and Management entered into a Software Consulting and Development Agreement dated May 8, 2013, to license our proprietary price fluctuation and data analysis software to our customer, Sure Street, Inc. The rights to our software are owned solely by Ticket Corp. and we intend to utilize our data analysis software as an integral part of our planned marketing efforts. Per this Agreement we generated $30,000 in revenue and have utilized this funding to replenish and supplement the cash we have been using for regulatory filings, legal and accounting costs and the first phase of our plan of operations. We have also generated $83,500 in revenue from ticket sales.
| 1. | Purchased our domain name WWW.Ticketcorp.com (which website is expressly not included or incorporated by reference to this filing) in January 2013. |
| 2. | Retained a web designer as of February 2013 who has designed our company logo and website, which is currently an active website. |
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3. | Built a database extension and electronic file system that allows us to store and search customer records. We intend to use this database to analyze our customer database to make selected recommendations for upcoming events. These were completed in April 2013. |
| 4. | Completed the design of its |
| 5. |
| 6. |
| 7. | We |
| 8. | We |
| 9. | We |
| 10. | We are in the final pre-launch testing of |
| 11. | We are in |
Accomplished during the Fiscal Year Ended December 17, 201431, 2017:
First Quarter Q1 2017
Completed rollout the Company signedmobile live event application Shindig.
Released the application on the Apple Store and Android Store and Google Play allowing for distribution to the broad consumer audience. This is a Promissory Notemajor milestone for the Company.
Marketing – Implemented a social media marketing program on the launch and announcement of Shindig. via Instagram.
Technology - Began Software Development of the next release of Shindig mobile app version 2.0. Continued to adapt the application to work with multiple shopping carts allowing for multiple vendors and suppliers. Continued to build reporting and uploading capabilities for partners to load merchandise to site.
Business Development - Executed key partnerships with major authorized licensed merchandise providers including Liquid Blue, Rockabilia, Get Down Art and Control Industries resulting in the amountTicket Corp mobile app Shindig now having over 10,000 pieces of $240,000licensed merchandise available for sale and delivery.
Second Quarter Q2 2017
Signed on a tour/artist that will be using Shindig for purchasing and delivery.
Executed an exclusive partnership with Russell Rheingrover. The note hasa major live music act to provide custom ticket and merchandise packages in conjunction with the artists.
Third Quarter Q3 2017
Attended first live event with Ticket Corp live event partner the Damian Marley tour with successful merchandise sales from the Shindig app with both at home delivery and at event pick up of purchased merchandise.
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Developed the live event community through news, blogs giveaways and promotion with targeted advertising.
Shindig app development accomplishments
Updated and enhanced admin functionality
| - | Simplified Category assignment and modification processes |
| - | API2Cart implementation for vendor inventory management |
| - | Enhanced reporting functionality |
| - | Designed new geolocation functionality |
| - | shows events by distance AND popularity. As popularity is based on ticket sales data the new feed updates with daily ticket sales trends (on a weekly rolling window) |
| - | to roll out Q4 2017. |
Fourth Quarter Q4 2017
Began Beta testing of version 2.0
Continued to execute on our pilot program focused on our ability to deliver merchandise purchased at an annual interest of 1.00%. The maturity date ofevent with delivery to home or pick up in event with additional tour dates for Damian Marley.
Continued to deliver the note is March 13, 2018. The note is associatedShindig application to the U.S. market with an Assignment Agreement between the Company and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreementpartnership with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er’s games with a fair market value of $80,000 per yearperforming artist Cypress Hill for three years.Q4 2017 event dates
Liquidity and Capital Resources
Our assets at December 31, 20142017 were $281, 577 which included $30,577$3,824 in cash, $11,000 in accounts receivable and $240,000 in a Ticket Assignment Agreement.cash. Management estimates our current monthly “burn rate” to be $5,000 and estimate our current cash and receivables will last until August 2015,through mid-April 2018, if no additional revenues are realized.
Plan of Operation for the next 12 months:
Off Balance Sheet Arrangements
As of December 31, 2014,2017, there were no off balance sheet arrangements.
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Going Concern
The accompanying financial statements are presented on a going concern basis. The CompanyWe had limited operations during the period from January 17, 2013 (date of inception) to December 31, 2014.2017. This condition raises substantial doubt about the Company’sour ability to continue as a going concern. The Company isWe currently in the development stage and has minimal expenses; management believes that the Company’sour current cash of $30,577 plus current revenues$3,824 is not sufficient to cover the expenses they will incur during the next twelve months. Additional revenues and possibly loans from our director will be required for our company to remain in business.
Emerging Growth Company Status
We are an "emerging growth company" as defined under the Jumpstart our Business Startups Act ("JOBS Act"). We will remain an "emerging growth company" for up to five years, or until the earliest of:
| 1. | the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, |
| 2. | the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or |
| 3. | the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period. |
As an "emerging growth company", we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to:
| · | not being required to comply with the auditor attestation requirements of section 404(b) of the Sarbanes-Oxley Act (“Sarbanes Oxley”) (we also will not be subject to the auditor attestation requirements of section 404(b) as long as we are a "smaller reporting company", which includes issuers that had a public float of less than $75 million as of the last business day of their most recently completed second fiscal quarter); |
| · | reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and |
| · | exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. |
In addition, section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in section 7(a)(2)(B) of the Securities Act of 1933 (the "Securities Act") for complying with new or revised accounting standards. Under this provision, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
During the time we qualify as an emerging growth company we plan to take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:
| · | A requirement to have only two years of audited financial statements and only two years of related MD&A; |
| · | Exemption from the auditor attestation requirement in the assessment of the emerging growth company’s internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; |
| · | Reduced disclosure about the emerging growth company’s executive compensation |
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Limited Operating History; Need for Additional Capital
There is no historical financial information about us on which to base an evaluation of our performance. We are a development stage company and we cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in implementing our business plan, and possible cost overruns due to increases in the cost of services.
To become profitable and competitive, we must implement our business plan and continue to generate revenue.
Significant Accounting Policies
Basis of Accounting
The Company’saccompanying audited financial statements areof Ticket Corp. have been prepared usingin accordance with accounting principles generally accepted in the accrual methodUnited States of accounting. On November 1, 2014America (GAAP) and the Board of Directors changed the year endrules of the Company from January 31 to December 31. The change toSecurities and Exchange Commission. In the year-end has resulted inopinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the Company filing this annual report on Form 10-Kresults of operations for the year ending December 31, 2014.periods presented have been reflected herein.
Basic Earnings (loss) PerLoss per Share
ASC No. 260, “Earnings Perper Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.
Basic net earnings (loss)loss per share amounts is computed by dividing the net earnings (loss)loss by the weighted average number of common shares outstanding. Diluted earnings (loss)loss per share areis the same as basic earnings (loss)loss per share due to the lack of dilutive items in the Company.our company.
Cash Equivalents
Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In accordance with ASC No. 250 all adjustments are normal and recurring.
Income Taxes
Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
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Revenue
The Company records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. The Company has generated $113,500 in revenue since its inception.
On December 17, 2014, we signed a Promissory Note in the amount of $240,000 with Russell Rheingrover. The Company will expense its advertising when incurred. There has been no advertising since inception.note had an annual interest of 1.00%. The maturity date of the note was March 13, 2018. The note was associated with an Assignment Agreement between our company and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreement with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er’s games with a fair market value of $80,000 per year for three years. We had accrued $3,800 in interest on the note as of June 30, 2016. On August 31, 2016 the Assignment Agreement was cancelled due to non-performance. All accrued interest was also cancelled, resulting in a gain of $3,800.
Item 8. Financial Statements
Our Financial Statements begin on page F-1 of this Annual Report on Form 10-K and are incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
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Management recognizes that there are inherent limitations in the United Stateseffectiveness of America.any system of internal control, and accordingly, even effective internal control can provide only reasonable assurance with respect to financial statement preparation and may not prevent or detect material misstatements. In addition, effective internal control at a point in time may become ineffective in future periods because of changes in conditions or due to deterioration in the degree of compliance with our established policies and procedures.
Under the Company will continuesupervision and with the participation of our president, management conducted an evaluation of the effectiveness of our internal control over financial reporting, as a going concern. As discussedof December 31, 2017, based on the framework set forth in Note # 4Internal Control-Integrated Framework - 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under this framework, management concluded that our internal control over financial reporting was not effective as of the evaluation date due to the factors stated below.
Management assessed the effectiveness of the Company’s internal control over financial statements,reporting as of evaluation date and identified the Company has had no operations and has no established source of revenue. This raises substantial doubt about its ability to continue as a going concern. Management’s plan in regard to these matters is also described in Note # 4. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
following material weaknesses:
Inadequate Segregation of Duties: We have an inadequate number of personnel to properly implement control procedures.
Lack of Audit Committee & Outside Directors on the Company’s Board of Directors: We do not have a functioning audit committee or outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.
Management is committed to improving its internal controls and will (1) continue to use third party specialists to address shortfalls in staffing and to assist the Company with accounting and finance responsibilities, (2) increase the frequency of independent reconciliations of significant accounts which will mitigate the lack of segregation of duties until there are sufficient personnel and (3) may consider appointing outside directors and audit committee members in the future.
Management, including our president, has discussed the material weakness noted above with our independent registered public accounting firm. Due to the nature of this material weakness, there is a more than remote likelihood that misstatements which could be material to the annual or interim financial statements could occur that would not be prevented or detected.
This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this annual report.
Changes in Internal Controls Over Financial Reporting
Item 9B. Other Information
None.
| Year Ended | Year Ended | |||||||
| December 31, 2014 | December 31, 2013 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 30,577 | $ | 17,472 | ||||
| Accounts Receivable | 11,000 | 14,000 | ||||||
| Inventory | - | 372 | ||||||
| Ticket Assignment Agreement | 240,000 | - | ||||||
| Total Current Assets | 281,577 | 31,844 | ||||||
| TOTAL ASSETS | $ | 281,577 | $ | 31,844 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| LIABILITIES | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 10,498 | $ | - | ||||
| Interest Payable | 200 | - | ||||||
| Due to Related Party | 100 | 100 | ||||||
| Total Current Liabilities | 10,798 | 100 | ||||||
| Long Term Liabilities: | ||||||||
| Note Payable - Shareholder | 240,000 | - | ||||||
| Total Current Liabilities | 240,000 | - | ||||||
| TOTAL LIABILITIES | 250,798 | 100 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock: authorized 100,000,000; $0.001 par value; | ||||||||
| 48,000,000 and 33,000,000 shares issued and outstanding at | ||||||||
| December 31, 2014 and December 31, 2013 | 34,500 | 33,000 | ||||||
| Paid in capital | 48,000 | - | ||||||
| Deficit accumulated during the development stage | (51,721 | ) | (1,256 | ) | ||||
| Total Stockholders' Equity | 30,779 | 31,744 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 281,577 | 31,844 | |||||
| From Inception | ||||||||||||
| The Year Ended | The Year Ended | (January 17, 2013) to | ||||||||||
| December 31, 2014 | December 31, 2013 | December 31, 2014 | ||||||||||
| REVENUES | $ | 69,500 | $ | 44,000 | $ | 113,500 | ||||||
| TOTAL REVENUES | 69,500 | 44,000 | 113,500 | |||||||||
| COST OF GOODS SOLD | ||||||||||||
| Beta Test Expense | 372 | - | 372 | |||||||||
| Purchases - Resale Tickets | 53,393 | 6,200 | 59,593 | |||||||||
| TOTAL COST OF GOODS SOLD | 53,765 | 6,200 | 59,965 | |||||||||
| GROSS PROFIT | 15,735 | 37,800 | 53,535 | |||||||||
| Operating Expenses: | ||||||||||||
| General and administrative | 66,199 | 39,056 | 105,256 | |||||||||
| Total Expenses | 66,199 | 39,056 | 105,256 | |||||||||
| Net loss for the period | (50,464 | ) | (1,256 | ) | (51,721 | ) | ||||||
| Net loss per share: | ||||||||||||
| Basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||
| Weighted average number of shares outstanding: | ||||||||||||
| Basic and diluted | 48,000,000 | 33,000,000 | 48,000,000 | |||||||||
| Common Stock | Additional | Total | ||||||||||||||||||
| Number of | Paid in | Accumulated | Shareholders' | |||||||||||||||||
| Shares | Par Value | Capital | Deficit | Equity | ||||||||||||||||
| Balance, January 17, 2013 (Inception) | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
| Common Shares issued: | ||||||||||||||||||||
| for cash on January 31, 2013 | 33,000,000 | 33,000 | - | - | 33,000 | |||||||||||||||
| Net loss | - | - | - | (1,256 | ) | (1,256 | ) | |||||||||||||
| Balance, December 31, 2013 | 33,000,000 | 33,000 | - | (1,256 | ) | 31,744 | ||||||||||||||
| Common Shares issued: | ||||||||||||||||||||
| for cash October 2014 | 15,000,000 | 15,000 | 34,500 | |||||||||||||||||
| Net loss | - | - | - | (50,464 | ) | (50,464 | ) | |||||||||||||
| Balance, December 31, 2014 | 48,000,000 | $ | 48,000 | $ | 34,500 | $ | (51,721 | ) | $ | 30,779 | ||||||||||
| From inception | ||||||||||||
| The Year Ended | The Year Ended | (January 17, 2013) to | ||||||||||
| December 31, 2014 | December 31, 2013 | December 31, 2014 | ||||||||||
| Operating activities: | ||||||||||||
| Net loss | $ | (50,464 | ) | $ | (1,256 | ) | $ | (51,721 | ) | |||
| Adjustment to reconcile net loss to net cash | ||||||||||||
| provided by operations: | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||
| Accounts Receivable | 3,000 | (14,000 | ) | (11,000 | ) | |||||||
| Inventory | 372 | (372 | ) | - | ||||||||
| Ticket Assignment Agreement | (240,000 | ) | - | (240,000 | ) | |||||||
| Accounts Payable | 10,498 | - | 10,498 | |||||||||
| Note Payable - Rheingrover | - | 100 | 100 | |||||||||
| Interest Payable | 200 | - | 200 | |||||||||
Net cash provided by operating activities | (276,395 | ) | (15,528 | ) | (291,923 | ) | ||||||
| Financing activities: | ||||||||||||
| Note Payable - Shareholder | 240,000 | - | 240,000 | |||||||||
| Capital stock | 15,000 | 33,000 | 48,000 | |||||||||
| Additional Paid-in Capital | 34,500 | - | 34,500 | |||||||||
Net cash provided by financing activities | 289,500 | 33,000 | 322,500 | |||||||||
| Net increase in cash | 13,105 | 17,472 | 30,577 | |||||||||
| Cash, beginning of period | 17,472 | - | - | |||||||||
| Cash, end of period | $ | 30,577 | $ | 17,472 | $ | 30,577 | ||||||
| Supplemental disclosure of cash flow information: | ||||||||||||
| Cash paid during the period | ||||||||||||
| Taxes | $ | - | $ | - | $ | - | ||||||
| Interest | $ | - | $ | - | $ | - | ||||||
The Company’sname, age and title of our executive officers and directors are as follows:
Name and Address of Executive Officer and/or Director | Age | Position | ||
Russell Rheingrover 1135 Terminal Way Suite 209 Reno, NV 89502 | 53 | Chairman and CEO, President, Secretary and Director | ||
Kristi Ann Nelson 1135 Terminal Way Suite 209 Reno, NV 89502 | 50 | Treasurer, CFO and Director |
The persons named above are the only promoters of Ticket Corp., as that term is defined in the rules and regulations promulgated under the Securities and Exchange Act of 1933. Mr. Rheingrover has served in his positions from inception (January 17, 2013) until present and Ms. Nelson has served as Director since inception and as Treasurer & Chief financial (Accounting) Officer since February 1, 2013.
Term of Office
Directors are appointed to hold office until the next annual meeting of our stockholders or until a successor is elected and qualified, or until resignation or removal in accordance with the provisions of the Company by-laws or Nevada corporate law. Officers are appointed by our Board of Directors and holds office until removed by the Board. The Board of Directors has no nominating, auditing or compensation committees.
Significant Employees
We currently have two employees, Mr. Rheingrover and Ms. Nelson. Mr. Rheingrover and Ms. Nelson currently devote the hours necessary to our business and are responsible for our general strategy, fund raising and customer relations.
No officer or director of the Company has been the subject of any order, judgment, or decree of any court of competent jurisdiction, or any regulatory agency permanently or temporarily enjoining, barring, suspending or otherwise limiting him from acting as an investment advisor, underwriter, broker or dealer in the securities industry, or as an affiliated person, director or employee of an investment company, bank, savings and loan association, or insurance company or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any securities. No officer or director of the Company has been convicted in any criminal proceeding (excluding traffic violations) nor are they the subject of any currently pending criminal proceeding.
Executive Biography
Russell Rheingrover, President, Secretary, CEO and Director
Mr. Rheingrover is the founder of Ticket Corp. He has over twenty years’ experience in building and developing emerging companies, primarily in the technology and entertainment industries.
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From 2008 to current he has been the owner of Jiffy Tickets a national reseller of concert, theater, sporting and event tickets. From 2003 to 2008 he was Director of North American Sales for PureDepth Inc., whose patented technology is used to enhance an array of advanced electronic displays, including mobile devices, casino games, amusement games and public information displays. From 1999 to 2003 he was Director U.S Sales for Pulse Entertainment where he was responsible for developing relationships with many key entertainment groups including Warner Brothers and NBC. From 1996 to 1999 he was in charge of Retail and Channel Sales for Hitachi in North America. From 1993 to 1996 he was Senior Vice President of Sales and Marketing for Velocity Corp., a leading video game developer and distributor.
Mr. Rheingrover is a graduate of the University of Pacific with a Bachelor of Science in Business Administration with an emphasis on Marketing in 1987.
Kristi Ann Nelson, Treasurer, CFO and Director
Ms. Nelson joined Ticket Corp. in February 2013. She has extensive experience in both technology and major media marketing.
From May 2009 to current she has been the Digital Account Director for IDG Enterprise (an International Data Group (IDG) company). IDG is a leading technology, media, research, event management, and venture capital organization. At IDG she is responsible for approximately 650 Business2Business clients in Washington and Oregon. Business2Business refers to "the exchange of products, services, or information between businesses rather than between businesses and consumers." From September 2008 to May 2009 she held the position of Account Manager for Computerworld at IDG Enterprise. From July 2006 to August 2008 she was a Regional Account Manager at Ziff Davis Enterprise, responsible for optimizing marketing strategies through integrated media programs for multiple clients. From November 2004 to June 2006 she was self-employed as a consultant in sales infrastructure assisting sales and marketing professionals in ways to improve their sales opportunities.
Ms. Nelson is a graduate of Cal State Chico with a Bachelor of Arts Degree in Psychology in 1992.
Code of Ethics
We do not currently have a code of ethics, because we have only limited business operations and only one officer and director, we believe a code of ethics would have limited utility. We intend to adopt such a code of ethics as our business operations expand and we have more directors, officers and employees.
Item 11. Executive Compensation
Management Compensation
Currently our officers and directors receive no compensation for their services during the development stage of our business operations. Officers and directors are reimbursed for any out-of-pocket expenses they may incur on our behalf. In the future once revenue is being generated, we may approve payment of salaries for officers and directors, but currently, no such plans have been approved. No officer or director salaries were paid from the proceeds of our recent offering. We do not have any employment agreements in place with our officer and director. We also do not currently have any benefits, such as health or life insurance, available to our employee.
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SUMMARY COMPENSATION TABLE
| Name and Principal Position | Year | Salary | Bonus | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Non-qualified Deferred Compensation Earnings | All Other Compensation | Total | |||||||||||||||||||||||||
| Russell Rheingrover, | 2017 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| CEO, Director | 2016 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| Kristi Ann Nelson, | 2017 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| CFO, Director | 2016 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END
| 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 | |||||||||||||||||||||||||||
| Russell Rheingrover | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
| Kristi Ann Nelson | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
DIRECTOR COMPENSATION
| Name | Fees Earned or Paid in Cash | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation | Total | |||||||||||||||||||||
| Rheingrover Russell | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Kristi Ann Nelson | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
31
Grants of Plan-Based Awards
There were no grants of plan based awards.
Outstanding Stock Awards at Year End
There were no stock awards
Option Exercises and Stock Vested
There were no options exercised or stock vested by our named officers.
Non Qualified Deferred Compensation
None.
Golden Parachute Compensation
None.
Employment Agreements
As of this time, there are no employment agreements with any named executive officer.
On January 31, 2013, a total of 33,000,000 shares of common stock were issued to Russell Rheingrover in exchange for cash in the amount of $33,000 or $0.001 per share.
There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the Company.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of the date of this annual report by: (i) each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) our directors, and or (iii) our officers. Unless otherwise indicated, the stockholder listed possesses sole voting and investment power with respect to the shares shown.
| Title of Class | Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percentage of Common Stock(1) | |||||||
| Common Stock | Russell Rheingrover, President 1135 Terminal Way, Suite 209 Reno, NV 89502 | 33,000,000 Direct | 69 | % | ||||||
| Common Stock | Kristi Ann Nelson 1135 Terminal Way, Suite 209 Reno, NV 89502 | 0 | 0 | |||||||
| Common Stock | Officers and/or directors as a Group | 33,000,000 | 69 | % | ||||||
Holders of More than 5% of Our Common Stock N/A | ||||||||||
32
| (1) | A beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding as of the date of this annual report. As of the date of this annual report, there were 48,000,000 shares of our common stock issued and outstanding. |
Description of Securities
The following statements relating to the capital stock set forth the material terms of our securities; however, reference is made to the more detailed provisions of, and such statements are prepared usingqualified in their entirety by reference to, the accrual methodCertificate of accounting. On NovemberIncorporation, amendment to the Certificate of Incorporation and the By-laws, copies of which are filed as exhibits to this registration statement. We currently have 1 201400,000,000 shares of common stock,0.001 par value authorized.
Common Stock
The holders of our Common Stock are entitled to one vote per share on all matters to be voted on by our stockholders, including the election of directors. Our stockholders are not entitled to cumulative voting rights, and, accordingly, the holders of a majority of the shares voting for the election of directors can elect the entire board of directors if they choose to do so and, in that event, the holders of the remaining shares will not be able to elect any person to our board of directors.
The holders of the Company’s Common Stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Board of Directors, changedin its discretion, from funds legally available. Upon the year endCompany’s liquidation, dissolution or winding up, the holders of our Common Stock are entitled to receive on a pro rata basis our remaining assets available for distribution. Holders of the Company from January 31Company’s Common Stock have no preemptive or other subscription rights, and there are no conversion rights or redemption or sinking fund provisions with respect to December 31. The changesuch shares. All outstanding shares of the Company’s Common Stock are, fully paid and not liable to the year-end has resulted in the Company filing its annual report on Form 10-K for the year ending December 31, 2014.
As of December 31, 2014, $1002017, $218,433 is owed to Russell Rhiengrover, CEO, fromRheingrover, CEO. $100 of the funds were loaned by him to the Company to open the bank account and is non-interest bearing with no specific repayment terms.The accrued interest payable of the Convertible Notes as outlined below was $28,333.
33
$35,000 of the funds are the result of a 10% Convertible Note issued on September 3, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 3, 2016 or is convertible at the conversion price of $0.05 per common stock share. On September 8, 2017, the terms of the Note were extended to September 7, 2018. The conversion price was considered by management to be a fair price.
$25,000 of the funds are the result of a 10% Convertible Note issued on October 5, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 5, 2016 or is convertible at the conversion price of $0.05 per common stock share. On October 5, 2017 the terms of the Note were extended to October 4, 2018. The conversion price was considered by management to be a fair price.
$35,000 of the funds are the result of a 10% Convertible Note issued on April 30, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by April 30, 2017 or is convertible at the conversion price of $0.10 per common stock share. On April 30, 2017, the terms of the Note were extended to April 30, 2018. The conversion price was considered by management to be a fair price.
$20,000 of the funds are the result of a 10% Convertible Note issued on September 8, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 8, 2017 or is convertible at the conversion price of $0.15 per common stock share. On September 8, 2017, the terms of the Note were extended to September 7, 2018. The conversion price was considered by management to be a fair price.
$30,000 of the funds are the result of a 10% Convertible Note issued on October 26, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 26, 2017 or is convertible at the conversion price of $0.15 per common stock share. On October 26, 2017, the terms of the Note were extended to October 26, 2018. The conversion price was considered by management to be a fair price.
$30,000 of the funds are the result of a 10% Convertible Note issued on January 6, 2017. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by January 6, 2018 or is convertible at the conversion price of $0.15 per common stock share. The conversion price was considered by management to be a fair price.
$10,000 of the funds are the result of a 10% Convertible Note issued on July 3, 2017. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by July 2, 2018 or is convertible at the conversion price of $0.15 per common stock share. The conversion price was considered by management to be a fair price.
$5,000 of the funds are the result of a 10% Convertible Note issued on October 3, 2017. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 2, 2018 or is convertible at the conversion price of $0.15 per common stock share. The conversion price was considered by management to be a fair price.
On December 17, 2014 the Company signed a Promissory Note in the amount of $240,000 with Russell Rheingrover. The note hashad an annual interest of 1.00%. The maturity date of the note iswas March 13, 2018. The note iswas associated with an Assignment Agreement between the Company and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreement with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er’s games with a fair market value of $80,000 per year for three years.
The company had accrued $3,800 in interest on the note as of June 30, 2016. On August 31,
Mr. Rheingrover, who currently owns 69% of our outstanding voting stock, is also the Chief Executive Officer of Jiffy Tickets, a national reseller of concert, theater, sporting and event tickets. He currently devotes approximately 5 hours of his business time to our affairs and the balance to Jiffy Tickets. He owes a fiduciary duty of loyalty to us, but also owes similar fiduciary duties to Jiffy Tickets. Due to his responsibilities to serve both companies, there is potential for conflicts of interest. He will use every effort to avoid material conflicts of interest generated by his
34
responsibilities to both companies, but no assurance can be given that material conflicts will not arise which could be detrimental to our operations and financial prospects. For the year ended December 31, 2017 the revenue generated from Jiffy Tickets was almost 50% of total revenues generated for Ticket Corp. There is also an outstanding accounts payable amount of $1,529 due to Jiffy Tickets as of December 31, 2017.
Item 14. Principal Accounting Fees and Services
The company’s Registration Statement on Form S-1 was declared effective on July 25, 2014. In October 2014 the company sold 15,000,000 shares of common stock to 50 independent shareholders at a price of $0.033 per share for total proceeds of $49,500, pursuantfees charged to the Registration Statement.Company for audit services, including quarterly reviews, were $10,950 for audit-related services, tax services were $Nil and other services were $Nil during the year ended December 31, 2017.
35
PART IV
The stockholders’ equity sectionfollowing exhibits are included with this filing:
| Exhibit | ||
| Number | Description | |
| 3(i) | Articles of Incorporation* | |
| 3(ii) | Bylaws* | |
| 31.1 | Sec. 302 Certification of CEO | |
| 31.2 | Sec. 302 Certification of CFO | |
| 32.1 | Sec. 906 Certification of CEO | |
| 32.2 | Sec. 906 Certification of CFO | |
| 101 | Interactive data files pursuant to Rule 405 of Regulation S-T |
| * | Incorporated by reference to the Company’s Form S-1 filed with the Securities and Exchange Commission (File Number 000-55547.) filed March 26, 2013 |
36
Signatures
Pursuant to the requirements of Section 13(a) or 15(d) of the Company containsSecurities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 9, 2018.
| Ticket Corp., Registrant | |||
By: /s/ Russell Rheingrover | |||
| Russell Rheingrover, CEO | |||
| Principal Executive Officer, Secretary and Director | |||
By: /s/ Kristi Ann Nelson | |||
| Kristi Ann Nelson | |||
| CFO, Treasurer, Principal Financial Officer, | |||
| Principal Accounting Officer and Director |
In accordance with the Exchange Act, this report has been signed below by the following classespersons on behalf of capital stockthe registrant and in the capacities and on the dates indicated.
| /s/ Russell Rheingrover | Principal Executive Officer & Director | April 9, 2018 | ||
| Russell Rheingrover | Title | Date | ||
| /s/ Kristi Ann Nelson | Principal Financial Officer & Director | April 9, 2018 | ||
| Kristi Ann Nelson | Title | Date |
37
802 N. Washington St.
Spokane, WA 99201
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of Ticket Corp.
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Ticket Corp. as of December 31, 2014:
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company issued these financial statements and found no subsequent event that needed to be reported.
We conducted our audits in accordance with the standards of the endPCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were effective such that the material informationmisstatement, whether due to error or fraud. The Company is not required to be included inhave, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our Securities and Exchange Commission reports is accumulated and communicatedaudits, we are required to our management, including our principal executive and financial officer, recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms relating to our company, particularly during the period when this report was being prepared.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of evaluation datethe financial statements. We believe that our audits provide a reasonable basis for our opinion.
Consideration of the Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 4 to the financial statements, the Company has limited operations and identifiedhas accumulated a significant deficit since inception. These factor raises substantial doubt about the following material weaknesses:Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 4. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
| /s/ Fruci & Associates II, PLLC | |
Fruci & Associates II, PLLC We have served as the Company’s auditor since 2016. | |
| Spokane, WA | |
| April 9, 2018 | |
F-1
TICKET CORP.
BALANCE SHEETS
| December 31, 2017 | December 31, 2016 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 3,824 | $ | 4,037 | ||||
| Accounts Receivable | - | 2,390 | ||||||
| Total Current Assets | 3,824 | 6,427 | ||||||
| TOTAL ASSETS | $ | 3,824 | $ | 6,427 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| LIABILITIES | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 76,645 | $ | 8,983 | ||||
| Interest Payable | 28,333 | 11,270 | ||||||
| Due to Related Party | 190,100 | 145,100 | ||||||
| Total Current Liabilities | 295,078 | 165,353 | ||||||
| Long Term Liabilities: | ||||||||
| Note Payable - Shareholder | - | - | ||||||
| Total Long Term Liabilities | - | - | ||||||
| TOTAL LIABILITIES | 295,078 | 165,353 | ||||||
| Commitments & Contingencies | - | - | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock: authorized 100,000,000; $0.001 par value; | ||||||||
| 48,000,000 shares issued and outstanding at December 31, 2017 and December 31, 2016 | 48,000 | 48,000 | ||||||
| Paid in capital | 34,500 | 34,500 | ||||||
| Accumulated deficit | (373,754 | ) | (241,426 | ) | ||||
| Total Stockholders' Equity | (291,254 | ) | (158,926 | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 3,824 | 6,427 | |||||
The accompanying notes are an integral part of these financial statements
F-2
STATEMENTS OF OPERATIONS
| Year Ended | Year Ended | |||||||
| December 31, 2017 | December 31, 2016 | |||||||
| REVENUES | $ | 12,208 | $ | 89,463 | ||||
| TOTAL REVENUES | 12,208 | 89,463 | ||||||
| COST OF GOODS SOLD | ||||||||
| Merchant Account Fees | 1,504 | 1,626 | ||||||
| Purchases - Resale Tickets | 8,699 | 60,518 | ||||||
| TOTAL COST OF GOODS SOLD | 10,204 | 62,144 | ||||||
| GROSS PROFIT | 2,004 | 27,319 | ||||||
| Operating Expenses: | ||||||||
| General and Administrative | 8,469 | 3,930 | ||||||
| Professional Fees | 43,206 | 122,506 | ||||||
| Research & Development | 65,594 | - | ||||||
| Total Expenses | 117,269 | 126,436 | ||||||
| Net loss from operations | (115,265 | ) | (99,116 | ) | ||||
| Other Income/Expense: | ||||||||
| Gain on Cancellation of Debt | - | 3,800 | ||||||
| Interest Expense | (17,063 | ) | (12,470 | ) | ||||
| Total Other Income/Expense | (17,063 | ) | (8,670 | ) | ||||
| Provision for taxes | - | - | ||||||
| Net Income (loss) | $ | (132,328 | ) | $ | (107,786 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted | $ | (0.003 | ) | $ | (0.002 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic and diluted | 48,000,000 | 48,000,000 | ||||||
The accompanying notes are an integral part of these financial statements
F-3
TICKET CORP.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
| Common Stock | Additional | Total | ||||||||||||||||||
| Number of | Paid in | Accumulated | Shareholders' | |||||||||||||||||
| Shares | Par Value | Capital | Deficit | Equity | ||||||||||||||||
| Balance, December 31, 2015 | 48,000,000 | $ | 48,000 | $ | 34,500 | $ | (133,640 | ) | $ | (51,140 | ) | |||||||||
| Net loss | - | - | - | (107,786 | ) | (107,786 | ) | |||||||||||||
| Balance, December 31, 2016 | 48,000,000 | 48,000 | 34,500 | (241,426 | ) | (158,926 | ) | |||||||||||||
| Net loss | - | - | - | (132,328 | ) | (132,328 | ) | |||||||||||||
| Balance, December 31, 2017 | 48,000,000 | $ | 48,000 | $ | 34,500 | $ | (373,754 | ) | $ | (291,254 | ) | |||||||||
The accompanying notes are an integral part of these financial statements
F-4
TICKET CORP.
STATEMENTS OF CASH FLOWS
| Year Ended | Year Ended | |||||||
| December 31, 2017 | December 31, 2016 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (132,328 | ) | $ | (107,786 | ) | ||
| Adjustment to reconcile net loss to net cash provided by operations: | ||||||||
| Changes in assets and liabilities: | ||||||||
| Accounts Receivable | 2,390 | (1,330 | ) | |||||
| Accounts Payable | 67,662 | 6,874 | ||||||
| Interest Payable | 17,063 | 12,470 | ||||||
| Gain on Cancellation of Debt | - | (3,800 | ) | |||||
| Net cash provided by operating activities | (45,213 | ) | (93,572 | ) | ||||
| Financing activities: | ||||||||
| Note Payable - Rheingrover | 45,000 | 85,000 | ||||||
| Net cash provided by financing activities | 45,000 | 85,000 | ||||||
| Net increase in cash | (213 | ) | (8,572 | ) | ||||
| Cash, beginning of period | 4,037 | 12,609 | ||||||
| Cash, end of period | $ | 3,824 | $ | 4,037 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Ticket Assignment Agreement | $ | - | $ | 240,000 | ||||
| Note Payable - Shareholder | $ | - | $ | (240,000 | ) | |||
| Cash paid during the period | ||||||||
| Taxes | $ | - | $ | - | ||||
| Interest | $ | - | $ | - | ||||
The accompanying notes are an integral part of these financial reporting that occurred during the last fiscal quarter for our fiscal year ended statements
F-5
Ticket Corp.
Notes to Financial Statements
December 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.2017
(Audited)
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS
Ticket Corp. (the Company) was incorporated under the laws of the State of Nevada on January 17, 2013. The Company was formed to become a provider of tickets, merchandise and social media communications driven primarily through its mobile application technology in the United States and a provider of premium seats and entrance to concerts, sporting events, theatre and entertainment, including corporate and group ticketing, special events and promotions worldwide.
The Company is in an active and operational stage. Its activities to date include but is not limited to capital formation, organization, application development, beta testing and launch as well as developing relationships with key product merchandisers and have populated the mobile app with available tickets and authentic merchandise to most major live events. The company is in the early stages of collecting revenue but is selling tickets and merchandise on its mobile application.
The name, age and title of our executive officers and directors are as follows:
Basic Loss per Share
ASC No. 260, “Earnings per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.
Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company.
If the company issues all shares convertible under the terms of the loans payable to Russell Rheingrover (see Related Party Transactions) the number of shares to be issued to Mr. Rheingrover has served in his positions from inception (January 17, 2013) until presentwould be 2,183,333 for the principal balance and Ms. Nelson has served as Director since inception and as Treasurer & C.F.O. since February 1, 2013.411,770 for the accrued interest if it is converted to shares.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In accordance with ASC No. 250 all adjustments are appointednormal and recurring.
F-6
Ticket Corp.
Notes to hold office until the next annual meeting of our stockholders or until a successor is elected and qualified, or until resignation or removalFinancial Statements
December 31, 2017
(Audited)
Income Taxes
Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Revenue
The Company records revenue when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured.
Reclassification
Certain balances from prior periods have bene reclassified in these audited financial statements to conform to current period presentation. This had no impact on prior reported assets, equity, or operations.
On December 17, 2014 the Company signed a Promissory Note in the amount of $240,000 with Russell Rheingrover. The note had an annual interest of 1.00%. The maturity date of the note was March 13, 2018. The note was associated with an Assignment Agreement between the Company and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreement with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er’s games with a fair market value of $80,000 per year for three years. The company had accrued $3,800 in interest on the note as of June 30, 2016. On August 31, 2016 the Assignment Agreement was cancelled due to non-performance. All accrued interest was also cancelled, resulting in a gain of $3,800.
Software Development Costs
The company expenses software development costs in accordance with FASB ASC 985-20-25. All costs incurred to establish the technological feasibility of a computer software product to be sold, leased, or otherwise marketed are research and development costs. Once technological feasibility has been reached, but not before it is released to the public, the cost incurred for software development can be capitalized and amortized after release. The company incurred $65,594 in software development costs during the fiscal year ended December 31, 2017.
NOTE 3. RECENT ACCOUNTING PRONOUCEMENTS
The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently issued pronouncements.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance provides new criteria for recognizing revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance requires expanded disclosures to provide greater insight into both revenue that has been recognized and revenue that is expected to be recognized in the future from existing contracts. Quantitative and qualitative information will be provided about the significant judgments and changes in those judgments that management made to determine the revenue that is recorded. This accounting standard update, as amended, will be effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. Early adoption is permitted, but no earlier than fiscal 2017. The Company is currently assessing the provisions of the Company by-laws or Nevada corporate law. Officers are appointed by our Boardguidance and has not determined the impact of Directors and holds office until removed by the Board. The Boardadoption of Directors has no nominating, auditing or compensation committees.this guidance on its consolidated financial statements.
F-7
Ticket Corp.
Notes to Financial Statements
December 31, 2017
(Audited)
NOTE 4. GOING CONCERN
| Name and Principal Position | Year | Salary | Bonus | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Non-qualified Deferred Compensation Earnings | All Other Compensation | Total | |||||||||||||||||||||||||
| Russell Rheingrover, | 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| CEO, Director | 2013 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| Kristi Ann Nelson, | 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| CFO, Director | 2013 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||
| Russell Rheingrover | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
| Kristi Ann Nelson | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
| Name | Fees Earned or Paid in Cash | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation | Total | |||||||||||||||||||||
| Rheingrover Russell | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Kristi Ann Nelson | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
$25,000 of the funds are the result of a 10% Convertible Note issued on October 5, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 5, 2016 or is convertible at the conversion price of $0.05 per common stock share. On October 5, 2017 the terms of the Note were extended to October 4, 2018. The conversion price was considered by management to be a fair price.
$35,000 of the funds are the result of a 10% Convertible Note issued on April 30, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by April 30, 2017 or is convertible at the conversion price of $0.10 per common stock share. On April 30, 2017, the terms of the Note were extended to April 30, 2018. The conversion price was considered by management to be a fair price.
$20,000 of the funds are the result of a 10% Convertible Note issued on September 8, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 8, 2017 or is convertible at the conversion price of $0.15 per common stock share. On September 8, 2017, the terms of the Note were extended to September 7, 2018. The conversion price was considered by management to be a fair price.
$30,000 of the funds are the result of a 10% Convertible Note issued on October 26, 2016. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 26, 2017 or is convertible at the conversion price of $0.15 per common stock share. On October 26, 2017, the terms of the Note were extended to October 26, 2018. The conversion price was considered by management to be a fair price.
F-8
Ticket Corp.
Notes to Financial Statements
December 31, 2017
(Audited)
$30,000 of the numberfunds are the result of sharesa 10% Convertible Note issued on January 6, 2017. Under the terms of ourthe note the principal sum and interest is to be repaid to Mr. Rheingrover by January 6, 2018 or is convertible at the conversion price of $0.15 per common stock owned beneficially asshare. The conversion price was considered by management to be a fair price.
$10,000 of the datefunds are the result of this annual report by: (i) each person (including any group) knowna 10% Convertible Note issued on July 3, 2017. Under the terms of the note the principal sum and interest is to usbe repaid to own more than five percent (5%)Mr. Rheingrover by July 2, 2018 or is convertible at the conversion price of any class of our voting securities, (ii) our directors, and or (iii) our officers. Unless otherwise indicated, the stockholder listed possesses sole voting and investment power with respect$0.15 per common stock share. The conversion price was considered by management to the shares shown.
| Title of Class | Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percentage of Common Stock(1) | |||||||
| Common Stock | Russell Rheingrover, President 1135 Terminal Way, Suite 209 Reno, NV 89502 | 33,000,000 Direct | 69 | % | ||||||
| Common Stock | Kristi Ann Nelson 1135 Terminal Way, Suite 209 Reno, NV 89502 | 0 | 0 | |||||||
| Common Stock | Officers and/or directors as a Group | 33,000,000 | 69 | % | ||||||
Holders of More than 5% of Our Common Stock N/A | ||||||||||
Mr. Rheingrover, who currently owns 69% of our outstanding voting stock, is also the Chief Executive Officer of Jiffy Tickets, a national reseller of concert, theater, sporting and event tickets. He currently devotes approximately 5 hours of his business time to our affairs and the balance to Jiffy Tickets. He owes a fiduciary duty of loyalty to us, but also owes similar fiduciary duties to Jiffy Tickets. Due to his responsibilities to serve both companies, there is potential for conflicts of interest. He will use every effort to avoid material conflicts of interest generated by his responsibilities to both companies, but no assurance can be given that material conflicts will not arise which could be detrimental to our operations and financial prospects.For the year ended December 31, 2016 the revenue generated from Jiffy Tickets was almost 50% of total revenues generated for Ticket Corp. There is also an outstanding accounts payable amount of $6,028 due to Jiffy Tickets as of December 31, 2017.
NOTE 6. STOCK TRANSACTIONS
On December 17, 2014January 31, 2013, the Company signedissued a Promissory Notetotal of 33,000,000 shares of common stock to its sole officer Russell Rheingrover for cash in the amount of $240,000 with Russell Rheingrover. $0.001 per share for a total of $33,000.
The note has an annual interestcompany’s Registration Statement on Form S-1 was declared effective on July 25, 2014. In October 2014 the company sold 15,000,000 shares of 1.00%. The maturity datecommon stock to 50 independent shareholders at a price of $0.033 per share for total proceeds of $49,500, pursuant to the note is March 13, 2018. The note is associated with an Assignment Agreement betweenRegistration Statement.
As of December 31, 2017 the Company had 48,000,000 shares of common stock issued and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreement with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er’s games with a fair market value of $80,000 per year for three years.outstanding.
The total fees chargedstockholders’ equity section of the Company contains the following classes of capital stock as of December 31, 2017:
Common stock, $ 0.001 par value: 100,000,000 shares authorized; 48,000,000 shares issued and outstanding.
NOTE 8. PROVISION FOR INCOME TAXES
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance. As of December 31, 2017 the Company had a net operating loss carry-forward of approximately $373,753. Net operating loss carry-forward, expires twenty years from the date the loss was incurred.
F-9
Ticket Corp.
Notes to Financial Statements
December 31, 2017
(Audited)
The Company is subject to United States federal and state income taxes at an approximate rate of 21%, (34% for 2016). The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the CompanyCompany’s income tax expense as reported is as follows:
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Accumulated loss before income taxes per financial statements | $ | 132,328 | $ | 107,786 | ||||
| Income tax rate | 21 | % | 34 | % | ||||
| Income tax recovery | (27,789 | ) | (36,647 | ) | ||||
| Permanent differences | - | - | ||||||
| Temporary differences | - | - | ||||||
| Valuation allowance change | 27,789 | 32,647 | ||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for audit services, including quarterly reviews, were $11,400financial reporting purposes and the amounts used for audit-related services,income tax services were $Nilpurposes. Deferred income taxes arise from temporary differences in the recognition of income and other services were $Nil during the year endedexpenses for financials reporting and tax purposes. The significant components of deferred income tax assets and liabilities at December 31, 2014.2017 are as follows:
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Net operating loss carryforward | $ | 78,488 | $ | 82,085 | ||||
| Valuation allowance | (78,488 | ) | (82,085 | ) | ||||
| Net deferred income tax asset | - | - | ||||||
The Company has recognized a valuation allowance for the deferred income tax asset since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years. The valuation allowance is reviewed annually. When circumstances change and which cause a change in management’s judgment about the realizability of deferred income tax assets, the impact of the change on the valuation allowance is generally reflected in current income.
The Tax Cuts and Jobs Act enacted on December 22, 2017, reduced the U.S. federal corporate tax rate from 35% to 21%. The Company has not yet completed its full accounting for the effect of the Act and is therefore providing an estimate of the anticipated effect. The most substantial impact is the reduction of the existing deferred tax benefit by $31,400 due to the decrease in future tax rates.
NOTE 9. SUBSEQUENT EVENTS
The total fees charged toCompany evaluated all other events or transactions that occurred after December 31, 2017 up through date the Company for audit services, including quarterly reviews, were $12,215 for audit-related services, for tax services $Nilissued these financial statements and other services were $Nil during the year ended December 31, 2013.found no subsequent event that needed to be reported.
F-10